The U.S. does not have an inheritance tax. Thus, any inheritance you receive as a beneficiary is tax-free to you (assuming relevant estate taxes have been paid). In limited instances the U.S. government may attach beneficiary inheritances where U.S. estates were subject to estate tax and failed to pay them prior to distribution to the heirs (Canada also has this as well). However, should you ever inherit a tax-deferred account such as a 401(k) or pension account, any distributions you take would be subject to income tax the same as if the decedent owner took a distribution. If you inherit tax-deferred accounts seek competent tax counsel as you have siginificant choices to make regarding titling of the accounts and required distributions. Of course any investment income generated by the inherited funds (once you receive it) would be subject to normal taxation.

Some states also tax beneficiary inheritances based on your residence status and your relationship to the deceased. If you indicate which state you are resident of I can confirm whether you have an inheritance tax issue.

Finally, Canada will not tax your inheritanec directly as I assume you are neither a resident or citizen of that country. They do however, impose an estate tax similar to ours. You may want to double-check with the executor or attorney handling the estate to verify if you have any filing requirements.

Because it is impossible for me to identify and consider ALL the relevant facts, this advice is not intended or written to be used for the purpose of avoiding penalties, and cannot be used for that purpose.