If you live in the U.S. and have family in Canada, you may be wondering what happens if you receive an inheritance from a Canadian estate. Here is a reader question that I recently answered on this topic:
Question: I live in the US (green card holder). My family lives in Canada. One Canadian family member will likely pass away this year (all assets are in Canada). I would like to understand how this impacts my taxes, but am having problems finding info on this. Do you know of any material I can read to help me understand how I will be taxed etc?
How A U.S. Resident Is Taxed On A Foreign Inheritance
As a resident of the US you can receive your inheritance tax free (at least federally). You may have to pay a state inheritance tax on amounts you receive.
Right now only 7 states have an inheritance tax: Indiana, Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania.