Canadian child Inheriting from an American father


In a case where an American parent living in the US passes away with no will (from Michigan), but one of the heirs is a Canadian (and not an American), is the Canadian heir treated like an American heir? I understand how US estate tax works and the lack of a Canadian inheritance tax, but I'm unclear on the cross-border issue. For example, would the Canadian (I presume a non-resident alien from an American perspective) have a reduced exemption? I also understand that certain states do not allow aliens to hold property (yet they might inherit that property). Thanks much!


david ingram replies:

I am always willing to be corrected but there are no Michigan property ownership problems that I am aware of and there should not be any problem with the Canadian Heir receiving their share after the US estate tax (if any has been paid). There are still problems with a non-resident alien spouse which usually require a QDOT (qualified Domestic trust) to go away but none that I am aware of for a child.