Ontario resident death/crossborder beneficiary ramifications
Moderator: Mark T Serbinski CA CPA
-
- Posts: 21
- Joined: Mon Feb 28, 2011 4:22 pm
Ontario resident death/crossborder beneficiary ramifications
Hello. My friend is in ill health. She is an Ontario resident, Canadian citizen, no US ties. She has $500K in a RRIF and $500k in a cash account. In her will and her RRIF she has designated her 5 kids as beneficiaries. One is a US resident, US Person. The 4 others are Canadian residents, Canadian citizens, no US Person status. Should she change/adjust the nature of the beneficiaries across the accounts, given that her goal is to give equally to each beneficiary and minimize taxes payable? She is coherent and willing/able to make changes, if they seem sensible. What would be the tax situation if she does nothing? How does the US Person beneficiary change anything, if at all? Thanks.
THe estate will still be considered to be CND resident if only one beneficiary who may or may not also be an executor is a US resident. Only if the testamentary trust had trustees or executors who were living outside of Canada then the trust is deemed to be non resident this case its Canadian her RRIF and all other assets are deemd to be sold at FMW the estate pays all cap gains tax and income tax the beneficiaries get it all after tax no tax to them.
JG