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Level 1
posted Oct 25, 2023 9:22:15 AM

Inheritance of RRSP and Canadian assets

What will the tax impact (US and California) be for my child, a US citizen residing in California, when I die if I have RRSP in Canada and corporate shares held in a Canadian portfolio?

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1 Replies
Employee Tax Expert
Oct 25, 2023 1:43:45 PM

Hello! stephaniemajor99,

 

Thank you for your question! It is my understanding that the taxation of the RRSP will depend on whether or not your son is a qualified beneficiary, at least in regards to Canadian inheritance laws (US accountant here). Assuming he receives the assets in the RRSP, he will not have any US inheritance tax to pay but there could be some state inheritance taxes. He may also be taxed on the earnings of the RRSP.

 

I have an article here that has some good information. https://turbotax.intuit.ca/tips/what-happens-to-your-rrsp-when-you-die-15766#:~:text=So%20the%20full%20amount%20of,the%20funds%20from%20your%20RRSP.