Americans Receiving An Inheritance From Canada

by Tax Guy - Burlington Accountant on January 13, 2010 Print This Post Print This Post

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.

About The Tax Guy...

Dean Paley CGA CFP is a Burlington accountant and financial planner who services individuals and business owners locally, nationally and internationally. Dean has appeared in the National Post, Toronto Star and Metro News.

To find out more, visit Dean's website Dean Paley CGA CFP or connect via Twitter @DeanPaleyCGACFP.

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