My father, now a Canadian citizen, is reviewing his will and asked if there were any tax problems for my 2 sisters and I (all US citizens) inheriting his primary residence Canadian property (or the sale value of it) after his death.
Upon his death his Canadian "common law wife", if there is such a thing, may be given "tenancy". She is also named executrix
US citizen inherit propery from Canadian father
Moderator: Mark T Serbinski CA CPA
In canada his common law wife IS his wife, and is allowed certain things regardless of his will.
Is your father still a US citizen?
Is your father still a US citizen?
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
There is no tax consequence to you for anything he gives.
For his estate, there will be deemed disposition on all his investments, certain things can apss tax deferred to his spouse, like cottages, pensions. These should go to spouse, and in most provinces half MUST go to spouse.
The province in which he lives and/or was marriued in have stricty succession rules for spousal inheritance.
Everything else is up to him.
For his estate, there will be deemed disposition on all his investments, certain things can apss tax deferred to his spouse, like cottages, pensions. These should go to spouse, and in most provinces half MUST go to spouse.
The province in which he lives and/or was marriued in have stricty succession rules for spousal inheritance.
Everything else is up to him.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
[quote="nelsona"]by married I mean either legal or common law.[/quote]
They reside in BC.
So the residence and land would go to my father's "wife" and then when she passes, the value at her death is "inherited" by us, "children"?
No Canadian Estate Tax because it is now her residence, unti lher death?
They reside in BC.
So the residence and land would go to my father's "wife" and then when she passes, the value at her death is "inherited" by us, "children"?
No Canadian Estate Tax because it is now her residence, unti lher death?
there is no Cdn inheritance or estate tax. But, as you say, since this would be her principal residence, her death would not trigger any capital gains for the estate.
BC does have probate fees.
BC does have probate fees.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
[quote="nelsona"]there is no Cdn inheritance or estate tax. But, as you say, since this would be her principal residence, her death would not trigger any capital gains for the estate.
BC does have probate fees.[/quote]
Will we need to file Form 3520 with the IRS at the time of my father's death, since our Share of the property would exceed $100,000 or not until his wife passes away or chooses to sell her principal resident property at which time we "actually" take posession?
BC does have probate fees.[/quote]
Will we need to file Form 3520 with the IRS at the time of my father's death, since our Share of the property would exceed $100,000 or not until his wife passes away or chooses to sell her principal resident property at which time we "actually" take posession?
It's not your until she dies or sells it to you. IF you inherit it at that time, then you will file a 3520, if the rules are the same at that time.
You seem a tad overconcerned about "getting" her house, no?
You seem a tad overconcerned about "getting" her house, no?
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
[quote="nelsona"]It's not your until she dies or sells it to you. IF you inherit it at that time, then you will file a 3520, if the rules are the same at that time.
You seem a tad overconcerned about "getting" her house, no?[/quote]
It was our childhood summer place when our mother was alive, before our Canadian stepmother raised us and before our father's current wife came into the picture, so the "family home" does have special meaning, yes.
Thanks again for your time and expertise. You deserve some time off!
You seem a tad overconcerned about "getting" her house, no?[/quote]
It was our childhood summer place when our mother was alive, before our Canadian stepmother raised us and before our father's current wife came into the picture, so the "family home" does have special meaning, yes.
Thanks again for your time and expertise. You deserve some time off!
Keep your relationship good and you just might get the place!
Not a tax issue, but you might want to check what rights attach to the previous co-owners (your mom and step). They or their estate may have a stake.
Not a tax issue, but you might want to check what rights attach to the previous co-owners (your mom and step). They or their estate may have a stake.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
[quote="nelsona"]Keep your relationship good and you just might get the place!
Not a tax issue, but you might want to check what rights attach to the previous co-owners (your mom and step). They or their estate may have a stake.[/quote]
Thanks, that about covers it all for now. Keep you sense of humor. It was one of the things that makes "death and taxes" worth talking about. Yours is the best "style" on this whole website!!! Our complements to you!
Not a tax issue, but you might want to check what rights attach to the previous co-owners (your mom and step). They or their estate may have a stake.[/quote]
Thanks, that about covers it all for now. Keep you sense of humor. It was one of the things that makes "death and taxes" worth talking about. Yours is the best "style" on this whole website!!! Our complements to you!