Inheritance - Stay here (US) or go there (Canada)?

[DebbyDoc]

Good day. My husband and I have been talking with his mom recently who is trying to get her affairs in order and do the best thing financially with the investments and money they saved to pass on to my husband and his sister. The inheritance is substantial beyond 6 figures. My husband is CDN, living in the US for the past 15 years, perm. resident.

We understand that he can not be power of atty as it complicates matters because he is living in the US. We also understand that the sheer amount of $$ he would have to pay in US taxes for the inheritance is crazy as well. What we are wondering is if we were to move to Canada, would he have the same tax burden on the inheritance given he is married to a US citizen? We realize I as a US citizen would have to pay taxes on my income etc but if the inheritance was willed to my husband, it would not be my income, rather his and I would not have to claim it if living in Canada as my income. Is that correct? His mom wants to leave him the family home as well, not sure if that poses more issues or not. We are trying to do the best thing and not break any laws but hate to see the hard earned money of his Canadian parents go to the US government in taxes they should not be able to have (in our opinions).

Any info or clarity surrounding this would be much appreciated.

[nelsona]

His mom is Cdnm and lives in canad.

So, why would you think there would any be tax to be paid by anyone?

There is no inheritance tax in either US nor canada.

There is only estate tax in US, but that does not apply to non-US citzens or residents, or on US property.

So, inheritance tax or estate tax should not be a worry for you.

Where were you getting such misinformation?

Now, there will be some tax on her stuff when she dies, but only on unrealized investments and pensions. Minor stuff really.

You might want to have a talk with a Cdn tax planner, but your US issues are minimal.