OK, slightly convoluted but here goes... I have read that there is no inheritance tax in Canada, but this is a weird situation, maybe.
Wife's aunt passed in early 2021. Was a naturalized Canadian citizen (1948). She lived and worked in Canada until the late 60's, when she moved to the US for the remainder of her life and became a US Citizen in the 90's. She was receiving Canadian Gov Annuity which, of course, ended upon her death. She also still had funds in a Canadian bank.
When she passed, her niece, a US Citizen, was the beneficiary of the Canadian funds. We had to probate in Canada to get the funds but it all worked out. I am now trying to close the aunt's bank account and being asked if we have a Clearance Certificate from the CRA. Well, no we don't.
I, her Executor, filed and FBAR with the IRS, but for some reason, never thought about having to file anything with the CRA. Or, since it is Canadian money inherited, are the no tax implications to worry about and therefore no filing needed.
Bottom line, since the aunt was not filing a Canadian tax return, because her Canadian income and funds were reported through the IRS, should I, her Executor, or my wife, her beneficiary, have filed something with the CRA with regard to this inheritance?
In either case, I apparently need to get this Clearance Certificate from the CRA to close the aunt's account, which we kept until now, just in case it was needed.(?) I have a number to call.
Thanks!
UPDATE: Talked to rep at CRA, he was confused as to why the bank is asking for a Clearance Cert since the aunt was a non-resident of Canada. I also have read that the Cert is not legally required. Am waiting to hear back from the bank.
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