Calculation assumptions

• Calculation intended for a Canadian resident who is not a US citizen (a non-resident alien, or “NRA”) for US tax purposes.
• Typical US-situs assets include: US-located real estate, shares of US corporations (regardless of where held or which broker), and tangible personal property located in the US. Situs determination rules are complex (e.g., US bonds, bank accounts, life insurance policies) and are not detailed here - to be validated item by item with a cross-border tax specialist.
• Gross tax is calculated using the US graduated estate tax rate schedule (IRC § 2001(c)) applied to the US-situs asset value entered - a schedule unchanged since 2002 and not indexed to inflation.
• The pro-rated unified credit (treaty Article XXIX B(2)) equals the full 2026 US unified credit (US$5,945,800, i.e. the tax on the US$15,000,000 basic exclusion amount) multiplied by the ratio of US-situs assets entered to the worldwide gross estate entered. This credit is never automatic: it must be claimed by filing IRS Form 706-NA together with Form 8833, with full disclosure of the worldwide estate to the IRS.
• If the pro-rated credit is lower than the thin statutory credit of US$13,000 available to any non-resident alien (without the treaty), that statutory credit is used instead - a rare case, which only occurs when US assets represent a tiny share (roughly 0.2%) of the worldwide estate.
• The additional marital credit under treaty Article XXIX B(3) (for property passing to a surviving spouse) is NOT modelled here - it may further reduce or eliminate the tax owing in certain situations, but its precise mechanics (including its interaction with the pro-rated credit) must be validated with a cross-border tax specialist before any planning.
• No deduction for debts, funeral expenses, or estate administration costs is taken into account - such deductions, prorated to the US/worldwide ratio, would reduce the taxable estate and therefore the gross tax.
• The US$60,000 filing threshold (below which a US return is generally not required for a non-resident alien) is shown for information only.
• No exchange rate is applied - all amounts must be entered directly in US dollars.
• 2026 amounts: US basic exclusion amount US$15,000,000, full unified credit US$5,945,800, made permanent by the One Big Beautiful Bill Act (July 2025) and indexed to inflation starting in 2027.
• This model does not account for US gift tax, US state-level estate/inheritance taxes (some states impose their own in addition to the federal regime), or the Canadian tax on the capital gain deemed realized at death, which applies in parallel (see the estate tax calculator).
• This result is educational and does not constitute personalized tax, legal, or estate planning advice.