Page 175 - A Canuck's Guide to Financial Literacy 2020

175

US Estate Tax

Thousands of Canadians identify themselves as snowbirds who spend the cold winter
months in the warm southern states. They may be surprised to find out that owning U.S.
assets may be subject to US estate tax upon death. This can include property located or
having a connection to the United States such as:

▪ Real Property,
▪ Shares in U.S. publicly trades companies
▪ Shares in U.S. private companies
▪ Debts owing by a US debtor.
▪ Investment accounts with U.S. brokerage firms

Any assets that are considered “U.S situs”, property that is located within the United States
is subject to tax.

$60,000 Limit

When a Canadian taxpayer passes away while owning US property such as stocks, bonds,
real estate, etc. of $60,000 or more, the executor would have to file Form 706-NA
regardless if no tax liability is owed. This form would notify the US government of the estate
but no tax would be owed if the worldwide estate is less than $11.4 million USD. If the
worldwide estate is higher than $11.4 million USD (2019), then estate tax may be payable.