Is an inheritance taxable in British Columbia, and what taxes apply to an estate?

This answer covers the law of British Columbia.

Usually not: most gifts and inheritances are amounts that individuals do not have to report as income on their tax return. Tax can still come up around the estate, and it is generally dealt with by the personal representative before assets are handed out.

The deceased's final return is due April 30 of the year after death if death occurred between January 1 and October 31 inclusive, and 6 months after the death if it occurred between November 1 and December 31 inclusive. A legal representative who distributes assets without first getting a CRA clearance certificate is personally liable for unpaid amounts, up to the value of the assets distributed. The certificate is requested on Form TX19, only after all required returns are filed, assessments received and amounts owing paid or secured.

The estate pays BC probate fees; they are not a tax on the beneficiary. No probate fee is payable if the estate's value does not exceed $25,000. Tax on income that inherited property earns later depends on the facts, so it is worth confirming with an accountant.