when i die how much tax will my beneficiaries have to pay on my home they inherit in nova scotia canada?

Answer 1

Assuming that your beneficiaries are Canadian they will not have to pay tax on inheriting your home. If they are in a foreign jurisdiction then it will depend on their taxing state.

Focusing on your home, the procedure will be mostly as follows:

When you pass away there will be a deemed disposition of your home. If the home is your principal residence, there is no tax consequences.

Your beneficiaries inherit the home at it's deemed disposition value, which is the market value on the date of your passing. If they hold onto the home for a period of time then sell it for more then its value was when they inherited, they will have a capital gain and have to pay tax. If they sell it shortly after inheriting then there's unlikely to be a taxable event.

Now, Nova Scotia does have an estate administration fee or Probate that will need to be paid on the value of the estate. I believe that Probate in N.S. is $820 on the first $200,000 of the estate, and $13.85 for every $1,000 thereafter.

Hope that helps!

Answer 2

I live in British Columbia and my parents asked the same questions a couple of years ago. inheritance tax is federally based and you are allowed what they call "once in a lifetime" exemption on up to 250k. they found a lawyer that suggested they put all of thier assets in a share with the executor of the estate. that way there is no tax to be paid on the initial sale of anything, the ownership just gets transfered to the executor and then the cash can be distributed as he or she sees fit or according to the wishes. they did the research because of a family friend that passed away and he had everything is his name. his surviving wife could not legally drive one of the vehicles until the estate had been settled which was more than 6 months. protecting family future is a great idea and it will protect the things you worked your whole life for.
i would suggest you talk to a lawyer and see what options you have. it will be a small cost for the piece of mind you will get.
best wishes

Answer 3

You would need to find out the tax laws for inheritance in Canada. I suggest you speak to a lawyer.

Answer 4

Canada does not impose inheretance tax.However,any future income from the inheritance is subject to tax based on your province.For example the rental income if the house is rented out.

Answer 5

I think money from your estate will be held to pay any property tax and income tax that you owe.Once your debts are resolved the money goes to your beneficiaries.I don't think they have to pay any other taxes.