We are very pleased to share that David Altro and Avi Guttman were asked to prepare a special for The Globe and Mail, which was published on May 3, 2020. Their article titled “Will the current presidential election change U.S. estate tax for Canadians?” provides insight into how the US estate tax may change with the upcoming US presidential election. The article reviews proposed changes by the Republicans and Democrats, and what this means for Canadians with US estate tax exposure.
To read the article you can see it in part below, or click here to view it on The Globe and Mail’s website if you are a subscriber.
Globe & Mail – Will the current presidential election change U.S. estate tax for Canadians?
David Altro and Avi Guttman
The Globe and Mail
May 3, 2020
The U.S. estate tax, also known as “death tax,” is imposed on the assets of Americans who pass away. But at a time when the novel coronavirus has led to increased attention to estate planning, snowbirds and other Canadians should remember that the U.S. death tax applies to all people who own properties in the United States.
For U.S. citizens and permanent residents, the estate tax applies to their worldwide assets. For Canadians with no U.S. status, their U.S. real estate, both for personal use and rental, and other U.S. holdings, such as shares of Microsoft Corp. or Apple Inc., are subject to the estate tax, with the following exceptions.
In 2017, the estate exemption threshold was US$5,490,000. That means any person with a worldwide estate valued less than that amount would not have to pay any U.S. estate tax.
U.S. President Donald Trump changed that with his Tax Cuts and Jobs Act of 2017. The new law more than doubled the exemption amount for those dying in 2018 to US$11,180,000, and indexed it to inflation. For 2020, that amount is now US$11,580,000. […]