Tax related to inheritance

chewbacca · Post by **chewbacca** » Sun Mar 14, 2010 4:54 pm

Hi,

I am a dual Canada/US citizen living in the US. I am non-resident in Canada for tax purposes.

Just wondering what my tax implications will be when my parents pass away and I inherit my share.

There is a house that my brother and I will split equally, and likely sell. There are some RRIF's and/or RRSP's, both ordinary bank deposits as well as securities. There are also some non-retirement ordinary bank accounts.

The total will likely be over $100,000 but under $400,000, depending upon the house value.

Also, is there anything we should be doing now to minimize tax implications later?

Thanks

nelsona · Post by **nelsona** » Mon Mar 15, 2010 6:23 am

YOU won't have any tax. Their estate will pay all tax based on death, which will be on the wind-up of the RRSPs. The house will have no tax.

Only income after ddeath will be in your hands.

Of course, I'm assuming that all this will occur after second parent's death, as it only makes sense that all be passed to the surving spouse first.

chewbacca · Post by **chewbacca** » Mon Mar 15, 2010 10:43 am

So there will be no tax implications in Canada or the US for me? I like that!

Will there at least be any forms I need to file in Canada or the US to say where I got all that money from?

nelsona · Post by **nelsona** » Mon Mar 15, 2010 5:02 pm

How about we wait for that time... you in some kind of hurry?

chewbacca · Post by **chewbacca** » Tue Mar 16, 2010 6:56 am

>>How about we wait for that time... you in some kind of hurry?

LOL

No, definitely not in a hurry.

But no harm in being prepared.