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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 6630
Experience:  FCCA FCMA CGMA ACIS
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My question is about inheritance I will receive from Canada.

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My question is about inheritance I will receive from Canada. I am a UK resident originally from Canada. The executor of my father's estate (which I will inherit) is considering investing my father's cash assets in her name with a letter to state that the money is intended for me, in my father's will. (the assets will not exceed $430,000 Canadian dollars) She has been advised to make this clear in a letter that she and I will sign. My question is - will I pay more tax on this inheritance if it comes to me as an investment?
JA: Have you talked to a tax professional about this?
Customer: No. this is my starting point
JA: Anything else you want the Accountant to know before I connect you?
Customer: No; not just now

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

Do not have anything to do with such a crazy proposal. The danger here is that the executor and the money will disappear. Canada has no Inheritance Tax (IHT) regime, any gains made on decease being taxed as income in a final assessment.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 7 days ago.
I agree that being cautious is key. The executor is my sister who I trust 100% I do not understand what you mean by: "Canada has no Inheritance Tax (IHT) regime, any gains made on decease being taxed as income in a final assessment." Can you spell this out for me?
Customer: replied 7 days ago.
I am not sure how this works. I don't feel the need for a phone call, at a £43 cost. Are you able to reply to my followup question?
Customer: replied 7 days ago.
Do I have to start this chat/question over?

Well, suppose the estate had a residence bought years ago, then any gain made on sale would be brought into the final tax assessment as income. That is how Canadian Tax works.

I understand your situation, but families have been known to fall out. Being an accountant makes one cautious and see possible skeletons in the cupboard everywhere!

The system offers telephone calls automatically, there is no requirement to take up the suggestion. Your follow ups will continue to register as you can see.

Thank you for your suport.

Customer: replied 7 days ago.
A phone call would be useful; I am on a month free trial. Will I have to pay £43 for a phone call?

You will indeed.