Many people may be surprised and pleased to learn that there is a new path to becoming a Canadian citizen. The Government of Canada passed Bill C-3, An Act to amend the Citizenship Act (2025), on December 15, 2025. Before this legislation came into effect, Canadian citizenship by descent was limited to the first generation born outside Canada. For example, Emily was born or naturalized in Canada, and she could pass her citizenship to her child, Duncan, born outside of Canada.
Under the old rules, Duncan could not pass his Canadian citizenship to his children born outside of Canada or any future generations. Canadian citizenship was restricted from being passed down through multiple generations. This legislation changes the first-generation limit to citizenship by descent and expands the rules to the next generation and multiple generations born abroad in certain circumstances.
Going back to Duncan, his children may have become Canadian citizens by operation of law when the legislation came into force in December 2025 and they would need to apply for a certificate of citizenship to prove their status.
Eligibility depends on a number of factors, and an immigration lawyer should be consulted in each specific circumstance.
According to the Government of Canada website as of the date of this blog, if you apply for a certificate of citizenship today, the processing time is about 25 months and there are approximately 121,800 people waiting for a decision.
From mid-December to May 31st, approximately 6,100 citizenship certificates were granted by Immigration, Refugees and Citizenship Canada (IRCC), approximately half of which were issued to U.S. persons.
This recent legislative change provides opportunity for people living abroad to become Canadian citizens and we may see people relocating to Canada on that basis.
Likely Impacts on Estate Planning, Estate and Trust Administration
Any person who becomes a Canadian citizen should obtain the appropriate tax and legal advice.
If a newly appointed Canadian citizen creates more ties to Canada in addition to obtaining citizenship, including moving to Canada or acquiring property in Canada, his or her estate plan should be reviewed to ensure it reflects his or her current circumstances. This would include reviewing a person’s current estate and incapacity planning, including wills, trusts and powers of attorney, as well as registered plans and life insurance policies.
Canada taxes primarily on residency, not citizenship. For an American, taxation is based on citizenship and becoming a Canadian does not eliminate your U.S. tax obligations.
In the context of estate planning, if a beneficiary may relocate to Canada once he or she receives his or her certificate of citizenship, flexible powers should be included in wills and trust instruments to allow for a trust to be moved to Canada.
As this is a recent change and the processing time to apply for a certificate of citizenship is lengthy, we will surely see how these changes play out in the estate planning and estate administration context in the coming years.
For Further Reading
“But Wait, There’s More: Canadian and Ontario Laws That Can Impact Estates and Trusts” – December 6, 2022
“That’s It – We’re Moving to Canada!” Leaving Assets Abroad: Estate Administration Issues” – October 13, 2020
— Marly Peikes