Canadian estate tax

[ginesio]

My wife is a Canadian citizen who has lived in the USA for almost 50 years as a Resident Alien. She is the beneficery in my will. Assets include a house, mutual funds and cash. If I die before she does, what estate tax will she be oblicgated for in Canada?

[Reba]

Should be none, unless you currently own property in Canada that she'll inherit.

As an LPR married to a USC however, she will not be entitled to full death benefits in the US like your Social Security etc. Plus, the government will tax her inheritances at a higher rate than they would if she were a US citizen. Which is one reason many LPRs decide to take citizenship in the US. The IRS is greedy

The two of you may want to consider putting some money aside now entirely in her name only, so that she's not left destitute by paying US taxes should you pre-decease her.

[Steven]

My wife is a Canadian citizen who has lived in the USA for almost 50 years as a Resident Alien. She is the beneficery in my will. Assets include a house, mutual funds and cash. If I die before she does, what estate tax will she be oblicgated for in Canada?

And where are you resident? A spouse who is an LPR in the US is considered a fairly heavy duty residential tie for tax purposes in the US. And ditto for her if you're resident in Canada.

Have you recently gotten married?

Basically if you're married, for tax purposes you can only have one principal residence which generally means you both live in the same country (for legal purposes at least), so the tax laws of that country apply.

[ginesio]

Thank you Steven and Reba!

Frederick