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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Canada Tax
Satisfied Customers: 111464
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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Second opinion] - I inherited US money from my relative

Customer Question

Second opinion] - I inherited US money from my relative citizen of the US. Now everything is processed.
This amount might be 50.000 to (probably) 100.000 US dollars. I am a Canadian citizen with a very modest yearly income.
1. When this inherited money will be transferred to Canada into my account, shall I pay tax in Canada, even the tax will be pay in the US?
2. While inherited money will be added to my yearly income, or, I have to pay tax for the whole amount or for the interest gained from it?
Submitted: 1 month ago.
Category: Canada Tax
Expert:  Law Educator, Esq. replied 1 month ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
1) The money will be transferred to you in Canada when you as heir give the executor of the estate instructions to transfer the money to you.
The estate would have to withhold 30% tax from any non-resident alien beneficiary and you would then need to file a non-resident tax return in the US to get a refund of any tax withheld and you would need a US accountant to file your tax return in the US to get the tax withheld returned to you.
2) In Canada, you do not have to claim cash from foreign inheritance, only real estate.
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