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ARTICLE · 18 MAY 2020

The Importance Of A Will: Part 2

Minden Gross LLP
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Upon death, an individual is—subject to certain exemptions—deemed to have disposed of his/her assets at fair market value.

CanadaFamily and Matrimonial
Matthew Getzler
Matthew Getzler
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In Part One of this article, I discussed some of the practical implications associated with dying without a Will, focusing on the appointment of executors/trustees, guardianship provisions and the distribution of assets on an intestacy.1 Part Two discusses certain income tax and probate fee consequences of dying without a Will.

Premature Income Tax Implications

Upon death, an individual is-subject to certain exemptions-deemed to have disposed of his/her assets at fair market value. Any inherent gains on such assets is subject to tax as a capital gain, which can be taxed at a rate in excess of 25% in Ontario in 2020.

The most common exception to this rule is when assets are transferred to a surviving spouse. The effect of such a transfer is that the capital gains owing upon the first spouse's death can be deferred until the later of the two spouse's deaths. This deferral can be significant where a surviving spouse survives the first-to-die spouse for a long

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