Inheritance tax from overseas???

j.bass

hi guys,

I just need a little advice if anyone can help....

My mum's Canadian and has lived here for over 40 years, her mother has just passed away, she lives in Canada.... she has recieved a cheque for a substantial amount of money from my Grans estate, when she banks this is it going to be hit with any sort of inheritence tax that you know of?? or will she have to pay anything other than the bank charges for cashing the cheque?

Is there any better way of banking the cheque other than into her HSBC current account.

any help appreciated.

John_Pierpoint

I know nothing about Canadian tax but this seems to suggest that an estate is charged to capital gains tax at half the normal rate, when the distribution is done.
http://en.wikipedia.org/wiki/Taxation_in_Canada

On this side of the pond the UK does not have a gift tax so there should be no problem clearing the cheque, other than the possibility that questions might be asked under the money laundering regulations. (It might be sensible to check the charges in advance).

I would think that as in this country a beneficiary of a residuary benefit, can ask for a copy of the accounts so they can see that the estate has been distributed according to the instructions in the will.

Cook_County

Given that this is a substantial amount and is being received from a non-dom it might have saved UK inheritance tax by leaving some/all of it in an excluded property trust.

If your mum chooses to convert this to Sterling she may have a UK capital gains tax liability on any foreign exchange gain depending of course how the Canadian dollar has moved against Sterling between the date of death and the date she converts the money.