estate tax issues

[barbarag]

My mother is deceased, and elderly father has investment assets in the US and Canada. He (and myself) are both dual US-Canadian citizens living in Canada for many years, and I have been named executor of his will.
My questions are as follows:
1. Upon his death, are assets on both sides of the border taxed by both governments? How does it work?
2. Can the tax bill be mitigated by moving US assets to Canada?
3. Is it useful to set up a trust to protect from estate taxes?

thanks
bv

[JGCA]

1) on his death sll his worldwide assets are deemed to have been sold off at FMV in Canada and the capital gains tax is owed by the estate then you inherit all at FMW. In the US as a USC he has a $ 5,000,000 exemption on estate tax liability less any exemptions he has used so far as gift tax so he may or may not be taxed in the US on the estate.

2)If you move assets to Canada there is no immediate tax unless a sale occurs a mere transfer does nothing and save no tax either.

3)An assets going into a trust are deemed to have been sold at FMW and subject to tax. So its not a good idea from a CND point since you will pay tax and may not save this on the estate tax anyway.

[barbarag]

Thanks! Last question: is the 5 million exemption affected by the recent plans in the US to increase the estate tax? I thought the exemption had been reduced in 2013 to 1 million $.
bg

[JGCA]

No its still at 5.25

[ND]

Nelsona- for my laugh of the day I'm waiting for you to pummel pmllp (sounds like pummel), as you did so well on your other post where they crept in.

[nelsona]

I already reported this site to serbinski, its in his hands as to what he wants to do about it.

You are advertizing.

[nelsona]

sorry ND, meant to say: you AREN'T advertizing, which is fine with me.

[nelsona]

besides their posts (thereare several) are so incoherent and robotic that no one in their right mind would consult with them.

[Sherin ilias]

Thanks for providing reliable posts!!