Just a Minute - Podcast Episode 23: Taxation and Gifting of Ontario Estate to Non-Residents of Canada

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[00:00] Opening Music

[00:13] Welcome to a new episode of "Just a Minute" by Landmark Law. Today's episode is presented to you by Mabel on April 14th, 2023 to help educate our listeners on various legal scenarios.

[00:25] BELL CHIME

[00:27] It is not uncommon today for family members to relocate abroad for school, career, family, or to pursue other personal interests.

[00:35] Oftentimes, expatriates will sever certain legal ties to Canada so that they don't have to file their tax returns as they're not considered citizens.

[00:43] When Ontario estate is gifted to beneficiaries, the estate must first pay for the estate administration tax, the income tax of the deceased and all other death taxes as required before obtaining probate. After probate is granted, beneficiaries are not taxed on the estate asset upon receipt.

[01:01] However, if the estate asset generates ongoing income such as rental or business income, standard accounting rules apply and you are advised to speak with an accountant. Generally, the income will be taxed as the beneficiary's personal income. For gifted cash, there is no tax on the interest upon deposit.

[01:21] Beneficiaries who are not citizens pay Canadian taxes on income received from sources in Canada, such as the ongoing rental or business income generated from an Ontario estate.

[01:32] If you're interested in drafting a will, feel free to reach out to us on our landmarklaw.ca website and book a consultation with us today.

[01:38] Closing Music