If you’ve been thinking about estate planning and leaving an inheritance to your family and perhaps other heirs, kudos for being proactive. After all, for most people their legacy options when gifting money to loved ones starts with an estate plan.

The Canada Revenue Agency (CRA) doesn’t consider the amount you inherit to be taxable income, but before you receive this inheritance, the CRA taxes property held in the estate of your benefactor (i.e., the person providing your inheritance).