2) Inheritance Tax Exemption: There are two exemptions that apply to inheritance:
a) Original residence exemption – This allows you not to pay any capital gains on the sale, or disposal, of your primary residence. But, for it to quality, the property must be your principal residence for each year you’ve owned it.
b) Lifetime Capital Gains Exemption – The capital gains deduction allows the exemption of capital gains from the sale, or disposal, of small business corporation shares, and farm or fishing property. Ask your advisor for help on this as there are different limits for each category, so you want to make sure you do it right.
3) Probate Fees: While there is no estate tax in Canada, some provinces may charge a probate fee. This can be a flat rate or a percentage of the property in the property. You can reduce probate fees that you owe the provincial government by making sure you name a beneficiary on your investments or co-own the property instead of being a sole proprietor. But, of course, it must be settled before the death of the person, as with the will, as the executor or the beneficiary cannot change it.
4) Steps for Settlement of Taxes on Canadian Inheritance:
