Inheritance tax for Canadians in US

[Rhodamet19]

I'm a Canadian residing in the US.
I will be inheriting some money from a Canadian relative and I have read I will be hit with a 25% inheritance tax by the Canadian government as a non-resident, which my siblings living in Canada would not pay.
But I've also read that the Canadian-US tax treaty may lower this tax. Could you tell me how this would work?

[nelsona]

This is not true.

There may be 25% withholding on the gains/income after you inherit but before you take possession(The same would apply to extra income your siblings in Canada might get but they would simply include it on their return). , but any tax that is owed on death is paid by the deceased and estate.

You pay no tax, either in Canada or US on the inherited moneys/property.

[Rhodamet19]

Thanks for the reply.
So if I understand, the 25% would be withheld by the Canadian government and then reimbursed?

[nelsona]

No, that would be your final payment.

As I said, it would not be on the entirety of the Inheitance. It would be on the few dollars (if any) that the estate would owe you for income eraned between the death, and final receipt of the inheritance, It isn't really anything to worry about.

The income would also be reported on your uS return, and then the 25% Cdn tax coukd be used as a credit.

[nelsona]

What you may be thinking of is when an estate is distributed before the executor has ensured thet the deceased and estae is tax compliant. It rarely gets to this, if done preoperly.

In fact, the red tape associated with withholding, id worse that simply getting complinat, so an executor rarely disburses before being compliant.