question about inheritance tax
- Thread starter LittleAsianGuy
- Start date
Yes , in Canada , we pay an inheritance tax . This is a substantial Tax . An Accountant or Wills and Probate Lawyer will be the people to ask for the details . The Bank will deduct the tax before any monies are made available to the Estate Executor for the purposes of the Will . However , you may prefer to say to hell with the silly rules and to just get on with living your life care free . wtf . Enjoy .
PS : sending you my Bills .
PS : sending you my Bills .
I think you are mistaken demoman.
The recipient of the inheritance does not pay tax, and so there is no "inheritance tax" in Canada. However, estate must pay off any outstanding taxes (income, capital gains etc) before the inheritance is distributed. So yes, there is tax taken off the inheritance, but it is taxed at the deceased tax rate, not the recipients rate.
Walter
The recipient of the inheritance does not pay tax, and so there is no "inheritance tax" in Canada. However, estate must pay off any outstanding taxes (income, capital gains etc) before the inheritance is distributed. So yes, there is tax taken off the inheritance, but it is taxed at the deceased tax rate, not the recipients rate.
Walter
There is no inheritance tax, at least in BC. An estate does have to pay off any debts owed and that may include income taxes, unpaid bills, etc. Further, if an estate has to go through probate there are fees payable to the courts that are a percentage of the value of the estate. People often think those are estate taxes when in fact they are probate fees (having said that it all goes to the government and so effectively they are the same).
The probate fee is not payable if an estate is worth less than $25,000.00.
If the esatte is worth more than $25,000 the fee is
(3) If the value of the estate exceeds $25 000, whether disclosed to the court before or after the issue of the grant or before or after the resealing, as the case may be, the amount of fee payable is
(a) $6 for every $1 000 or part of $1 000 by which the value of the estate exceeds $25 000 but is not more than $50 000, plus
(b) $14 for every $1 000 or part of $1 000 by which the value of the estate exceeds $50 000.
The above is taken from the Probate Fee Act of BC.
The probate fee is not payable if an estate is worth less than $25,000.00.
If the esatte is worth more than $25,000 the fee is
(3) If the value of the estate exceeds $25 000, whether disclosed to the court before or after the issue of the grant or before or after the resealing, as the case may be, the amount of fee payable is
(a) $6 for every $1 000 or part of $1 000 by which the value of the estate exceeds $25 000 but is not more than $50 000, plus
(b) $14 for every $1 000 or part of $1 000 by which the value of the estate exceeds $50 000.
The above is taken from the Probate Fee Act of BC.
my understanding
is that if something is willed to you then it is given to you tax free however if no will was made then everything goes into probate and is taxed. so people always make sure you have some sort of will made because in this event your assests may be held in probate for a while and your family will have to wait until the government has taken all they want first !
is that if something is willed to you then it is given to you tax free however if no will was made then everything goes into probate and is taxed. so people always make sure you have some sort of will made because in this event your assests may be held in probate for a while and your family will have to wait until the government has taken all they want first !
The law may differ from Alberta vs BC. At the end of the day you need to check with someone who knows the law where you live. In BC it doesn't matter if the property passes to you thru a Will or not thru a Will, it just depends on if it has to go thru the courts, whether for a grant of probate (where there is a Will) or a grant of letters of administration (where there is no Will). If there is no need to go thru the courts, then the probate fees are not payable (ie. ownership of property that is jointly owned does not need to go thru the courts to be transferred to a survivor). Again, in BC there is no estate tax, just probate or court fees.
I'm an executor named in a some three Wills so I have looked into these things.
I'm an executor named in a some three Wills so I have looked into these things.
it doesn't matter in AB whether it is willed or not...still goes thru probate if it is above a certain amount.
and it doesn't matter, will or no will...there are still taxes to be paid by the estate, and what is finally inherited is tax free.
Walter
and it doesn't matter, will or no will...there are still taxes to be paid by the estate, and what is finally inherited is tax free.
Walter
Call it whatever you want if your parents die and leave you their vacation cottge that they paid 5 grand for in 1958 and its now worth 800 grand you owe the government a shitload of cash. Use all the descriptions you want its still an inheritance tax.
Sound right
I is right on with the explanation .. I l got all this information a number of years ago when there was a possibility of deal with exactly what was mentioned in the capital gains tax . on inheriting rental property .. That has since be resolved now there will only be a house .. and cash to deal with.
When it come to the probate fees . there is a way to get around them , But it involves trust in the family .. The house can be put in the childeens names along with w the perents .. and all the moneys could be in join bank accounts .. and GIC.. then there is no probate to go through.. Same for all other items .. they can basicaly all ready be given to the person that is to have them .. < Put there name one them .. and they just can't have them until you are done with them.
I is right on with the explanation .. I l got all this information a number of years ago when there was a possibility of deal with exactly what was mentioned in the capital gains tax . on inheriting rental property .. That has since be resolved now there will only be a house .. and cash to deal with.
When it come to the probate fees . there is a way to get around them , But it involves trust in the family .. The house can be put in the childeens names along with w the perents .. and all the moneys could be in join bank accounts .. and GIC.. then there is no probate to go through.. Same for all other items .. they can basicaly all ready be given to the person that is to have them .. < Put there name one them .. and they just can't have them until you are done with them.
The most important ones being the principal residence exemption, spousal rollover rules and the lifetime capital gains exemption on shares of qualified Canadian controlled private corporations and farming/fishing properties.
Your description is bang on, are you a bean counter by any chance?
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