I received an e-mail recently from a U.S. citizen with landed immigrant status in Canada asking about the tax implications of an inheritance to be received after his parents (who are U.S. citizens living in the U.S.) passed away.
In the U.S. there is an estate tax that is charged to the estate of the deceased by the U.S. government. There may also be additional state estate taxes charged. In Canada, the deceased is considered to have sold their assets at fair market value and must pay tax on any capital gains as well as income earned to the date of death. Neither Canada, nor the U.S. charge taxes in the inheritance (except a few U.S. states).