Ep. 127 - Canada Has No Estate Tax, So Why Can Death Benefit Trigger a Huge Tax Bill?
Canada doesn't have an estate tax, but death can still trigger one of the biggest tax bills your family will ever face.
Part 4 of 6 of Keeping the Farm or Ranch Together.
Canada replaced its estate tax with a capital gains system in the early 1970s. Today, when someone dies, their assets are generally treated as if they were sold at fair market value, a rule called deemed disposition, and registered plans like RRSPs are included in income in the year of death. Assets left to a spouse or a spousal trust can roll over tax-deferred, and qualifying farm and fishing property can pass to a child…
The skinny
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