Will, Trusts and Guardianship

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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niloch
Posts: 6
Joined: Tue Jul 13, 2010 7:42 am

Will, Trusts and Guardianship

Post by niloch »

Hi All,

Looking for some input here, my family's been US resident now for 3 years, we've established some equity here (house, 401k, some investments) and still have some RRSP's back home in Canada along with life insurance policies in both US and Canada (Canada is a term).

If something were to happen to use, we'd like for our daughter to go back to Canada to live with my sister and her family.

Here's where it potentially get's tricky - any thoughts on how best to setup our investments so that she's not going to get unfairly taxed?

We are meeting with a lawyer tomorrow (a service my company provides for free) but I'm skeptical if he'd be able to offer any advice on tax planning, especially with our unique situation.

Thanks,

CH
JGCA
Posts: 754
Joined: Thu Nov 18, 2010 3:05 pm
Location: Montreal, QC Canada

Post by JGCA »

Upon death the beneficiary pays no tax your Estate pays the tax there is no unfair tax its tax in the estate but as you know the estate has presently a $ 5M per person exemption but that will go down to $ 1M in 2013 unless teh law is amended. So over that amount the estate is taxed your daughter is not taxed untill she received money and that capital is tax free.
JG
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