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Hasnt happened yet but it will be something that will be happening eventually,what do i need to know when this scenario arises, what are the tax liabilities and cross border paperwork that would need to be completed when i sell the house?
I'm in Quebec,parents are in Hernando county Fla.
I realize there is no good time to talk about the passing of ones parents but i'd like to be prepared and avoid the possibility of the house sitting abandoned for years while i'm up in Canada caught up in a bureaucratic jungle of paperwork.
Do you or your folks have any friends state-side? When you inherit the property (assuming it is owned outright, no mortgages or liens), and is transferred to you via probate in Florida, just execute a quit-claim deed to a trusted friend in the states. Hire a local attorney in Florida if you don't have friends you trust (or even if you do). Put the property up for sale (if anything in Florida is selling by then). After the sale, give the friend or attorney enough to cover any income taxes they may have incurred, and then have them cut a check to you for the balance.
Go back to Canada with the check. End of the matter.
There is a brother who lives near Mom and Dad and a Sister who lives in Toronto,they will also be part of the ensuing paperwork jungle.
Nor'Eastah your plan sounds like i sign the house over to some one else then have them sell it and give me the money,sounds easy enough maybe my brother could play a role in fact i'll suggest Mom and Dad put in their will that my brother should get the deed to the house with the understanding that house's fair market value will be split 3 ways , however there is still the question of inheritance taxes on the sudden financial windfall i would receive, would those taxes have to be paid to the US and Canada?
The taxes would not even be due unless the house value (your portion of it) exceeded something like $500,000 USD. I recalled my own parents' home in New England here, to be shared by myself and my brother. Because we all lived in different states (me in RI, my brother in MA, and the house in CT), the attorney just cut a check to each of us for some $80,000 and we each took the $$$ back home, no taxes due. If either my brother or I lived in CT, we would have had to pay CT income taxes, but we didn't. The checks were free and clear.
I don't know the size of the "sudden financial windfall" you expect to receive, but if it's just from the house, you won't get enough from a 3-way split to pay any US taxes. I just don't think this whole thing is going to cost you a nickel, unless your folks have some really serious dough in addition to the house. I would keep mum on the subject, and just engage a good attorney.
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