Hollywood has done an amazing job not only scaring Americans about the IRS, but they have also scared Canadians. US Estate Taxes is one of the areas that differs from Canada. The US has a tax that is specific to the estates of a deceased person. This is one area that is quite complex and also varies person by person. There are many factors that need to be considered and thought of well in advance of the other true constant in life … DEATH!
Unfortunately this is one area that many snowbirds tend to over look or have underestimated the impact that this can have. Fortunately the Canada-US tax treaty does have provisions for Canadians as it relates to the US Estate Taxes. These provisions list out certain estate value thresholds that need to be considered when contemplating the implications of the US estate taxes.