Can a non-resident beneficiary receive an inheritance from an Ontario estate?
Yes, a person who lives outside Canada can be a beneficiary of an Ontario estate, but tax and paperwork rules can affect what they receive. The CRA lists most gifts and inheritances among amounts you do not report as income. Estate or trust income paid or credited to a non-resident is different: it is subject to Part XIII tax at 25%, and a tax treaty can reduce the rate or give an exemption.
Withheld Part XIII tax must reach the CRA by the 15th day of the month after the month the amount was paid or credited. For an estate or trust, the NR4 return and slips are due no later than 90 days after the end of the tax year. Before distributing property, the estate's legal representative should get a clearance certificate (Form TX19); without one, they are personally liable for the deceased's unpaid tax, up to the value of the property distributed.
Treaty rates differ by country, and currency transfers and local reporting depend on where you live. Because the answer turns on the type of payment and your country, it is worth confirming the details with a lawyer or accountant before money moves.
Key takeaways
- The CRA lists most gifts and inheritances among amounts you do not report as income.
- Estate or trust income paid or credited to a non-resident is subject to Part XIII tax at 25%, which a tax treaty can reduce or exempt.
- Withheld tax is due by the 15th day of the month after payment or crediting, and the NR4 return is due within 90 days after the estate's tax year ends.
- Without a clearance certificate (Form TX19), the legal representative is personally liable for unpaid tax up to the value of property distributed.