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-   -   Wills and Probate - UK and Canada (https://britishexpats.com/forum/canada-56/wills-probate-uk-canada-829435/)

colchar Oct 16th 2014 4:21 am

Re: Wills and Probate - UK and Canada
 

Originally Posted by lookingtogo (Post 11187966)
JAJ

There is inheritance tax in Canada?


No, but Ontario charges such ridiculous probate fees that it is an inheritance tax by stealth.

JonboyE Oct 16th 2014 5:45 am

Re: Wills and Probate - UK and Canada
 

Originally Posted by colchar (Post 11440361)
No, but Ontario charges such ridiculous probate fees that it is an inheritance tax by stealth.

Most probate fees are voluntary. It is unlikely both spouses will die before 65 so you should hold all your assets in joint tenancy. (I do not generally advocate that parents should hold property in joint tenancy with their children.) You can gift money to your children before your death. You can transfer assets purchased with non-mortgage debt out of your estate. Make sure all your life insurance, RRSPs and RIFS etc have named beneficiaries. Once past 65 use a form of alter-ego trust to hold assets.

These all work in BC. They need to be planned because there may be adverse tax consequences that exceed the savings in probate fees.

FirstRatofftheShipUK Oct 16th 2014 5:50 am

Re: Wills and Probate - UK and Canada
 

Originally Posted by lookingtogo (Post 11187966)
JAJ

There is inheritance tax in Canada?

I am sure the poster is referring to reciprocal tax arrangements between Canada and The UK as to assets, capital gains, income tax...etc for non-residents.

There is no actual 'death tax' in BC for example akin to that in The UK.
However, an estate has to pay a probate fee (about 1.4% of total estate value) to the BC government to process a court application for probate. It is a 'tax' in reality. I am sure other provinces are the same*

Also, FWIW unless you are a native indian the federal government is not involved. Equally, there is no such thing as a federal 'Canadian' will.

*I may, or may not, be a dual UK/BC qualified lawyer. If I am, this is not legal advice as we have no retainer. If I am not, you are fololish to listen to me.


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