and the reverse question..inheriting RRSP

[stewak2]

The flip side, I am beneficiary on spouse's RRSP.
I am dual citizen, resident of Canada, she is Canadian citizen/resident
As far as I can determine, if I am beneficiary of her RRSP, no Canadian taxes are due until funds are withdrawn, at which point they are taxed in Canada.
IRS should have no claim on these funds since the were earned in Canada by a non-USC.
I also have an RRSP, funded when I worked in Canada, and no contributions were ever deducted in US ( this was before the change to allow such deductions, by which point I was working in US anyway ).
She is beneficiary of this RRSP.
While there were no deductions on US returns for contributions, there has been growth in the plan, of course, and I have elected each year to defer taxation.
What happens here? I would think the IRS is entitled to tax on the growth, but how is it calculated, reported, and collected?
Further to that, I would think that the Canadian tax she pays when withdrawing funds would be eligible as FTC vs the US tax payable, and since the Canadian tax is likely higher, she'd likely have no additional US liability.
Correct?

[nelsona]

If transferred to you they would be taxed in your hands when you would withdraw em.
There is no treaty rotection from us taxation on these funds as they would be your income.So it might best if her rasp is collapsed at death to her estate
Your rrsp would escape us taxation if transferred to her, but would be subject to estate tax.
So theexact reverse of what you thought.

I hope you are getting he point that her non-res status makes your estate subject
To us estate taxes that would not otherwise apply, so you need to address this