In my last update, I wrote about the American Taxpayer Relief Act, the eleventh-hour Fiscal Cliff compromise legislation, which narrowly avoided the return of U.S. estate tax for owners of US properties dying with a global estate worth more than $1 million. It was great news, especially for Canadian Snowbirds and real estate investors looking to take advantage of US real estate prices without jeopardizing the Canadian inheritances destined for their children.
But, as we say, the only sure thing in tax law is that the rules will change eventually. True to form, the latest budget proposal from the US government is suggesting changes that could have significant implications, both for Canadian Snowbirds and US citizens living in Canada. In particular, the ‘permanent’ $5 million estate tax exemption amount is back in play, and major changes in the treatment of certain trusts are proposed. Read the rest of this entry »