No. of Recommendations: 1
Another way is this tip which a fellow board member once gave me: As this law applies to legal persons only one can get around it by setting up a structure where not a person but a different entity, a trust or so, owns the US assets, the BRK shares or whatever. When the person dies it does not constitute an inheritance case because the owner is the trust, and that trust did not die.Good point - many of my US shares are held in a corporate account, and that would protect me that way.
There is also a credit called 'Unified Credit' which allows for substantial exemption if one's assets are gifted (perhaps including imparted by will?) to another person, for instance, to one's spouse :
The unified credit allows a U.S. citizen to gift a certain amount of their assets to other parties without having to pay gift or estate taxes. Article XXIX B of the tax treaty allows a Canadian resident to claim a pro rata (proportionate) share of the U.S. unified credit amount against any U.S. estate taxes payable. For 2023, a Canadian resident's estate can reduce the U.S. estate tax liability by claiming the unified tax credit equal to the greater of:
The following is a calculation to illustrate the unified credit. For 2018, a Canadian resident estate can reduce its United States estate tax liability by claiming the unifed tax credit which is equal to the greater of: A) $13,000 or B) $4,425,800 multiplied by the ratio of your taxable United States estate value to your worldwide estate value.
Marital credit
The marital credit is an additional credit under the Canada-U.S. tax treaty and is available when a surviving spouse inherits U.S. property on death. The marital credit is equal to the lesser of the unified credit and the amount of U.S. estate tax owing.manulifeim.com - US estate tax exposure for canadian residents who are not US citizensSo if half a Canadian's assets were in US shares, you would have your first $2.2m worth of shares sheltered from this tax, if I understand it correctly.
