{"id":1200,"date":"2025-12-13T03:00:10","date_gmt":"2025-12-13T03:00:10","guid":{"rendered":"https:\/\/canada.truenorthtaxes.ca\/?p=1200"},"modified":"2025-12-13T03:00:10","modified_gmt":"2025-12-13T03:00:10","slug":"inheritance-tax-canada","status":"publish","type":"post","link":"https:\/\/truenorthbenefits.ca\/taxes\/inheritance-tax-canada\/","title":{"rendered":"Inheritance Tax Canada"},"content":{"rendered":"\n<style>\n:root {\n    --primary-color: #4F46E5;\n    --secondary-color: #10B981;\n    --text-dark: #1F2937;\n    --text-light: #6B7280;\n    --bg-light: #F9FAFB;\n    --border-color: #E5E7EB;\n    --success-color: #059669;\n    --warning-color: #F59E0B;\n}\n\n.vftc-wrapper {\n    font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif;\n    max-width: 1200px;\n    margin: 0 auto;\n    padding: 20px;\n    color: var(--text-dark);\n}\n\n.vftc-hero {\n    text-align: center;\n    padding: 40px 20px;\n    background: #4F46E5;\n    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0.3s;\n}\n\n.vftc-faq-item.active .vftc-faq-toggle svg {\n    stroke: white;\n    transform: rotate(180deg);\n}\n\n.vftc-faq-answer {\n    margin-top: 16px;\n    color: var(--text-light);\n    line-height: 1.7;\n    display: none;\n}\n\n.vftc-faq-item.active .vftc-faq-answer {\n    display: block;\n}\n\n.vftc-cta-box {\n    background: linear-gradient(135deg, var(--primary-color) 0%, #7C3AED 100%);\n    padding: 32px;\n    border-radius: 12px;\n    text-align: center;\n    color: white;\n    margin: 30px 0;\n}\n\n.vftc-cta-box h3 {\n    margin: 0 0 16px 0;\n    color: white;\n}\n\n.vftc-cta-box p {\n    margin: 0 0 20px 0;\n    opacity: 0.95;\n    color: white;\n}\n\n.vftc-cta-button {\n    display: inline-block;\n    background: white;\n    color: var(--primary-color);\n    padding: 14px 32px;\n    border-radius: 8px;\n    text-decoration: none;\n    font-weight: 600;\n    transition: all 0.3s;\n}\n\n.vftc-cta-button:hover {\n    transform: translateY(-2px);\n    box-shadow: 0 4px 12px rgba(0, 0, 0, 0.2);\n}\n\n@media (max-width: 768px) {\n    .vftc-hero h1 {\n        font-size: 1.8em;\n    }\n    \n    .vftc-content {\n        padding: 24px;\n    }\n    \n    .vftc-features-grid {\n        grid-template-columns: 1fr;\n    }\n}\n<\/style>\n\n<div class=\"vftc-wrapper\">\n    <div class=\"vftc-hero\">\n        <h1>Inheritance Tax Canada 2026<\/h1>\n        <p>The truth about what you actually pay when inheriting assets \u2014 spoiler: it&#8217;s not what you think<\/p>\n    <\/div>\n\n    <div class=\"vftc-content\">\n        <p>Here&#8217;s the deal \u2014 you just inherited your aunt&#8217;s cottage, or maybe your parents&#8217; investment portfolio, and now you&#8217;re sweating about how much the government&#8217;s going to take. Let me save you some stress right off the bat: <strong>Canada doesn&#8217;t have an inheritance tax<\/strong>. I know, I know, you&#8217;ve heard horror stories from American friends about estate taxes eating half their inheritance. That&#8217;s not how we roll up here, eh?<\/p>\n\n        <div class=\"vftc-highlight-box\">\n            <h3>Quick Answer<\/h3>\n            <p><strong>There is no inheritance tax in Canada<\/strong>, meaning beneficiaries don&#8217;t pay taxes on money or assets they inherit. However \u2014 and this is crucial \u2014 the deceased&#8217;s estate is taxed before distribution through deemed disposition rules, capital gains taxes, and RRSP\/RRIF income inclusion. As a beneficiary, you receive your inheritance tax-free, but the estate pays the CRA first.<\/p>\n        <\/div>\n\n        <h2>\n            <div class=\"vftc-icon\">\n                <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                    <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M12 8c-1.657 0-3 .895-3 2s1.343 2 3 2 3 .895 3 2-1.343 2-3 2m0-8c1.11 0 2.08.402 2.599 1M12 8V7m0 1v8m0 0v1m0-1c-1.11 0-2.08-.402-2.599-1M21 12a9 9 0 11-18 0 9 9 0 0118 0z\"><\/path>\n                <\/svg>\n            <\/div>\n            Why Everyone Gets Confused About Estate Taxes\n        <\/h2>\n        \n        <p>The confusion is totally understandable. The United States slaps an inheritance tax on estates, and since we&#8217;re bombarded with American tax advice online, it&#8217;s easy to assume the same rules apply here. But Canada takes a fundamentally different approach \u2014 instead of taxing the beneficiary when they receive assets, we tax the deceased&#8217;s estate as if they sold everything the day before they died.<\/p>\n\n        <p>This concept is called <strong>deemed disposition<\/strong>, and it&#8217;s the CRA&#8217;s way of settling the tax bill on assets that gained value over someone&#8217;s lifetime. Your grandmother bought that cabin for $50,000 in 1985 and it&#8217;s worth $650,000 now? The estate pays capital gains tax on that $600,000 increase before you inherit it. Once you receive the property, though, the slate&#8217;s clean \u2014 you don&#8217;t report it as income, you don&#8217;t pay tax on receiving it.<\/p>\n\n        <h2>\n            <div class=\"vftc-icon\">\n                <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                    <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M9 5H7a2 2 0 00-2 2v12a2 2 0 002 2h10a2 2 0 002-2V7a2 2 0 00-2-2h-2M9 5a2 2 0 002 2h2a2 2 0 002-2M9 5a2 2 0 012-2h2a2 2 0 012 2\"><\/path>\n                <\/svg>\n            <\/div>\n            How the Estate Actually Gets Taxed\n        <\/h2>\n\n        <p>When someone passes away, their executor (or estate trustee, if you want to get official about it) has a mountain of paperwork to handle. The CRA requires a final tax return \u2014 called a terminal return \u2014 that includes everything from income earned up to the date of death to those deemed disposition calculations I mentioned.<\/p>\n\n        <div class=\"vftc-features-grid\">\n            <div class=\"vftc-feature-card\">\n                <div class=\"vftc-feature-icon\">\n                    <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                        <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M3 12l2-2m0 0l7-7 7 7M5 10v10a1 1 0 001 1h3m10-11l2 2m-2-2v10a1 1 0 01-1 1h-3m-6 0a1 1 0 001-1v-4a1 1 0 011-1h2a1 1 0 011 1v4a1 1 0 001 1m-6 0h6\"><\/path>\n                    <\/svg>\n                <\/div>\n                <h4>Capital Gains Tax<\/h4>\n                <p>Properties, stocks, mutual funds \u2014 anything that appreciated gets treated as sold at fair market value. Right now, 50% of capital gains are taxable and added to the deceased&#8217;s final income.<\/p>\n            <\/div>\n\n            <div class=\"vftc-feature-card\">\n                <div class=\"vftc-feature-icon\">\n                    <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                        <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 9V7a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2m2 4h10a2 2 0 002-2v-6a2 2 0 00-2-2H9a2 2 0 00-2 2v6a2 2 0 002 2zm7-5a2 2 0 11-4 0 2 2 0 014 0z\"><\/path>\n                    <\/svg>\n                <\/div>\n                <h4>RRSP\/RRIF Taxation<\/h4>\n                <p>The full value of registered retirement accounts becomes taxable income on the final return. This can push the estate into higher tax brackets, sometimes resulting in a massive tax bill.<\/p>\n            <\/div>\n\n            <div class=\"vftc-feature-card\">\n                <div class=\"vftc-feature-icon\">\n                    <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                        <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M19 21V5a2 2 0 00-2-2H7a2 2 0 00-2 2v16m14 0h2m-2 0h-5m-9 0H3m2 0h5M9 7h1m-1 4h1m4-4h1m-1 4h1m-5 10v-5a1 1 0 011-1h2a1 1 0 011 1v5m-4 0h4\"><\/path>\n                    <\/svg>\n                <\/div>\n                <h4>Provincial Probate Fees<\/h4>\n                <p>These vary wildly across Canada. Ontario charges 1.5% on estates over $50,000. Quebec? Virtually nothing. These are administration fees, not taxes, but they still reduce what beneficiaries receive.<\/p>\n            <\/div>\n        <\/div>\n\n        <h2>\n            <div class=\"vftc-icon\">\n                <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                    <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M9 12l2 2 4-4m5.618-4.016A11.955 11.955 0 0112 2.944a11.955 11.955 0 01-8.618 3.04A12.02 12.02 0 003 9c0 5.591 3.824 10.29 9 11.622 5.176-1.332 9-6.03 9-11.622 0-1.042-.133-2.052-.382-3.016z\"><\/path>\n                <\/svg>\n            <\/div>\n            What&#8217;s Actually Tax-Free in Canada\n        <\/h2>\n\n        <p>Now for the good news \u2014 some assets pass to beneficiaries without triggering any tax liability whatsoever. Understanding these exemptions can literally save an estate hundreds of thousands of dollars.<\/p>\n\n        <ul class=\"vftc-list\">\n            <li><strong>Principal Residence:<\/strong> Your primary home is exempt from capital gains tax through the principal residence exemption. Lived there your whole life? The estate owes nothing on it.<\/li>\n            <li><strong>Life Insurance Proceeds:<\/strong> Death benefits paid to beneficiaries are completely tax-free. This is why smart estate planning often includes life insurance to cover the estate&#8217;s tax bill.<\/li>\n            <li><strong>TFSA Balances:<\/strong> Tax-Free Savings Accounts live up to their name. The accumulated value passes to beneficiaries tax-free, though investment income earned after death gets taxed.<\/li>\n            <li><strong>Spousal Rollovers:<\/strong> When a spouse or common-law partner inherits, most assets can transfer at their original cost base, deferring taxes until the surviving spouse eventually dies or sells.<\/li>\n        <\/ul>\n\n        <div class=\"vftc-cta-box\">\n            <h3>Understanding Capital Gains on Your Estate?<\/h3>\n            <p>Calculate the potential tax implications on appreciated assets<\/p>\n            <a href=\"https:\/\/truenorthbenefits.ca\/taxes\/taxable-capital-gains-canada\/\" class=\"vftc-cta-button\">Learn About Capital Gains<\/a>\n        <\/div>\n\n        <h2>\n            <div class=\"vftc-icon\">\n                <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                    <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M9 5H7a2 2 0 00-2 2v12a2 2 0 002 2h10a2 2 0 002-2V7a2 2 0 00-2-2h-2M9 5a2 2 0 002 2h2a2 2 0 002-2M9 5a2 2 0 012-2h2a2 2 0 012 2m-6 9l2 2 4-4\"><\/path>\n                <\/svg>\n            <\/div>\n            The Clearance Certificate: Your Executor&#8217;s Shield\n        <\/h2>\n\n        <p>Here&#8217;s something most beneficiaries don&#8217;t realize: executors can be held personally liable for unpaid taxes if they distribute estate assets too early. That&#8217;s where the clearance certificate comes in \u2014 it&#8217;s the CRA&#8217;s official stamp that says &#8220;all taxes are paid, you&#8217;re good to go.&#8221;<\/p>\n\n        <p>The executor files Form TX19 after submitting all required tax returns and paying the tax bill. The CRA takes their sweet time processing these \u2014 we&#8217;re talking 120 days on average, sometimes longer. Until that certificate arrives, smart executors hold back enough assets to cover any potential tax reassessments. Nobody wants to explain to beneficiaries why they need to return part of their inheritance because the CRA found an error.<\/p>\n\n        <p>Want to understand your overall tax situation better? Check out our <a href=\"https:\/\/truenorthbenefits.ca\/taxes\/income-tax-calculator\/\" style=\"color: var(--primary-color); text-decoration: none; font-weight: 600;\">income tax calculator<\/a> to see how different income levels affect your tax bracket.<\/p>\n\n        <h2>\n            <div class=\"vftc-icon\">\n                <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                    <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M3.055 11H5a2 2 0 012 2v1a2 2 0 002 2 2 2 0 012 2v2.945M8 3.935V5.5A2.5 2.5 0 0010.5 8h.5a2 2 0 012 2 2 2 0 104 0 2 2 0 012-2h1.064M15 20.488V18a2 2 0 012-2h3.064M21 12a9 9 0 11-18 0 9 9 0 0118 0z\"><\/path>\n                <\/svg>\n            <\/div>\n            Cross-Border Complications: U.S. Assets\n        <\/h2>\n\n        <p>Got a snowbird parent who owns property in Florida or Arizona? Brace yourself \u2014 you&#8217;re about to navigate two tax systems simultaneously. The United States doesn&#8217;t care that you&#8217;re Canadian; if the deceased owned U.S. assets worth more than US$60,000, the estate might face U.S. estate tax on top of Canadian deemed disposition tax.<\/p>\n\n        <p>This is one area where DIY estate planning can absolutely backrupt you. Cross-border tax treaties exist, foreign tax credits can help, but honestly? If there are significant U.S. assets involved, hire a tax professional who specializes in cross-border estates. The money you&#8217;ll save in taxes and headaches will more than cover their fee.<\/p>\n\n        <h2>\n            <div class=\"vftc-icon\">\n                <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                    <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M9.663 17h4.673M12 3v1m6.364 1.636l-.707.707M21 12h-1M4 12H3m3.343-5.657l-.707-.707m2.828 9.9a5 5 0 117.072 0l-.548.547A3.374 3.374 0 0014 18.469V19a2 2 0 11-4 0v-.531c0-.895-.356-1.754-.988-2.386l-.548-.547z\"><\/path>\n                <\/svg>\n            <\/div>\n            Smart Strategies to Minimize Estate Taxes\n        <\/h2>\n\n        <p>While you can&#8217;t avoid taxes entirely (this is Canada, after all), there are legitimate strategies to reduce the estate tax burden. These require planning while you&#8217;re alive, not scrambling after death.<\/p>\n\n        <ul class=\"vftc-list\">\n            <li><strong>Designate beneficiaries directly:<\/strong> RRSPs, RRIFs, TFSAs, and life insurance with named beneficiaries bypass the estate entirely, avoiding probate fees and speeding up distribution.<\/li>\n            <li><strong>Maximize TFSA contributions:<\/strong> Since TFSAs grow tax-free and pass tax-free, they&#8217;re one of the best estate planning tools available.<\/li>\n            <li><strong>Consider trusts:<\/strong> Testamentary trusts can spread income over multiple years and across multiple beneficiaries, reducing the overall tax hit.<\/li>\n            <li><strong>Gift assets before death:<\/strong> Canada has no gift tax. Strategic lifetime gifting can move appreciated assets out of your estate, though watch for attribution rules.<\/li>\n            <li><strong>Equalize the estate:<\/strong> Use life insurance to balance inheritances, especially when one child gets the family business and another gets liquid assets.<\/li>\n        <\/ul>\n\n        <div class=\"vftc-cta-box\">\n            <h3>Planning Your Estate Tax Strategy?<\/h3>\n            <p>Learn where you stand in the tax brackets and how it affects your estate<\/p>\n            <a href=\"https:\/\/truenorthbenefits.ca\/taxes\/tax-brackets-canada\/\" class=\"vftc-cta-button\">View Tax Brackets 2026<\/a>\n        <\/div>\n\n        <h2>\n            <div class=\"vftc-icon\">\n                <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                    <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M12 8v4m0 4h.01M21 12a9 9 0 11-18 0 9 9 0 0118 0z\"><\/path>\n                <\/svg>\n            <\/div>\n            Common Mistakes That Cost Beneficiaries Thousands\n        <\/h2>\n\n        <p>I&#8217;ve seen these errors drain estates faster than a Tim Hortons run on free coffee day. Don&#8217;t let your family make these same mistakes:<\/p>\n\n        <p><strong>Distributing assets before getting the clearance certificate.<\/strong> The executor becomes personally liable for any tax owing. Period. Wait for that certificate, no matter how much beneficiaries complain about the delay.<\/p>\n\n        <p><strong>Forgetting about the deceased&#8217;s final year income tax return.<\/strong> Even if they died in January, you still need to file their regular return for the previous year if it wasn&#8217;t done yet. Two returns, two deadlines, two opportunities for penalties if you miss them.<\/p>\n\n        <p><strong>Assuming the cottage is exempt because it&#8217;s a residence.<\/strong> The principal residence exemption only covers ONE property. If the deceased owned both a home and a cottage, only one gets the exemption. Choose wisely.<\/p>\n\n        <p><strong>Not planning for the RRSP tax bomb.<\/strong> A $500,000 RRSP becomes fully taxable income at death (unless transferred to a spouse). Combined with other income, this can push the marginal tax rate above 50%. Life insurance can fund this tax bill without liquidating investments at the worst possible time.<\/p>\n    <\/div>\n\n    <div class=\"vftc-faq-section\">\n        <h2>Frequently Asked Questions<\/h2>\n\n        <div class=\"vftc-faq-item\">\n            <div class=\"vftc-faq-question\">\n                Do I have to report my inheritance on my tax return in Canada?\n                <div class=\"vftc-faq-toggle\">\n                    <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                        <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M19 9l-7 7-7-7\"><\/path>\n                    <\/svg>\n                <\/div>\n            <\/div>\n            <div class=\"vftc-faq-answer\">\n                No, you don&#8217;t. Inherited money and assets are not considered taxable income in Canada. The estate pays all taxes before distribution, so what you receive is yours free and clear. You only pay tax on investment income you earn after inheriting.\n            <\/div>\n        <\/div>\n\n        <div class=\"vftc-faq-item\">\n            <div class=\"vftc-faq-question\">\n                What&#8217;s the difference between probate fees and inheritance tax?\n                <div class=\"vftc-faq-toggle\">\n                    <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                        <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M19 9l-7 7-7-7\"><\/path>\n                    <\/svg>\n                <\/div>\n            <\/div>\n            <div class=\"vftc-faq-answer\">\n                Probate fees are provincial administration charges for validating a will and giving the executor legal authority to distribute assets. They&#8217;re calculated as a percentage of the estate value and vary by province. Inheritance tax would be a tax on receiving an inheritance \u2014 which Canada doesn&#8217;t have. They&#8217;re completely different things.\n            <\/div>\n        <\/div>\n\n        <div class=\"vftc-faq-item\">\n            <div class=\"vftc-faq-question\">\n                How long does an executor have to settle an estate in Canada?\n                <div class=\"vftc-faq-toggle\">\n                    <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                        <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M19 9l-7 7-7-7\"><\/path>\n                    <\/svg>\n                <\/div>\n            <\/div>\n            <div class=\"vftc-faq-answer\">\n                There&#8217;s no strict deadline, but most estates settle within 12-18 months. The executor must file the deceased&#8217;s final tax return (due April 30 of the following year or 6 months after death, whichever is later), obtain a clearance certificate (typically 120+ days), and resolve any debts or disputes before distributing assets.\n            <\/div>\n        <\/div>\n\n        <div class=\"vftc-faq-item\">\n            <div class=\"vftc-faq-question\">\n                Can the CRA come after me for my parent&#8217;s unpaid taxes?\n                <div class=\"vftc-faq-toggle\">\n                    <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                        <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M19 9l-7 7-7-7\"><\/path>\n                    <\/svg>\n                <\/div>\n            <\/div>\n            <div class=\"vftc-faq-answer\">\n                In limited situations, yes. If you received assets from the estate and the executor distributed them without a clearance certificate, the CRA can recover unpaid taxes from beneficiaries up to the value of what they received. This is rare but possible, which is why clearance certificates matter.\n            <\/div>\n        <\/div>\n\n        <div class=\"vftc-faq-item\">\n            <div class=\"vftc-faq-question\">\n                What happens to capital gains when I inherit property?\n                <div class=\"vftc-faq-toggle\">\n                    <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                        <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M19 9l-7 7-7-7\"><\/path>\n                    <\/svg>\n                <\/div>\n            <\/div>\n            <div class=\"vftc-faq-answer\">\n                The estate pays capital gains tax on the increase from when the deceased bought the property to its fair market value at death. You inherit it at that death-date value (the &#8220;adjusted cost base&#8221;). If you later sell it, you only pay capital gains on the increase from the date you inherited it.\n            <\/div>\n        <\/div>\n\n        <div class=\"vftc-faq-item\">\n            <div class=\"vftc-faq-question\">\n                Is there a deadline for transferring RRSP assets to a spouse?\n                <div class=\"vftc-faq-toggle\">\n                    <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                        <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M19 9l-7 7-7-7\"><\/path>\n                    <\/svg>\n                <\/div>\n            <\/div>\n            <div class=\"vftc-faq-answer\">\n                Yes \u2014 the transfer must be completed by December 31 of the year following the year of death to qualify for tax-free rollover treatment. Miss this deadline and the full RRSP value gets taxed on the deceased&#8217;s final return. Don&#8217;t procrastinate on this one.\n            <\/div>\n        <\/div>\n\n        <div class=\"vftc-faq-item\">\n            <div class=\"vftc-faq-question\">\n                What if the deceased person owned cryptocurrency?\n                <div class=\"vftc-faq-toggle\">\n                    <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                        <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M19 9l-7 7-7-7\"><\/path>\n                    <\/svg>\n                <\/div>\n            <\/div>\n            <div class=\"vftc-faq-answer\">\n                Cryptocurrency is treated as property for tax purposes. The deemed disposition rule applies \u2014 the estate pays capital gains tax on the difference between what the deceased paid for the crypto and its fair market value at death. Check out our crypto taxes guide for detailed rules.\n            <\/div>\n        <\/div>\n\n        <div class=\"vftc-faq-item\">\n            <div class=\"vftc-faq-question\">\n                Can I disclaim an inheritance to avoid taxes?\n                <div class=\"vftc-faq-toggle\">\n                    <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                        <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M19 9l-7 7-7-7\"><\/path>\n                    <\/svg>\n                <\/div>\n            <\/div>\n            <div class=\"vftc-faq-answer\">\n                Yes, you can refuse an inheritance by filing a disclaimer with the executor. The asset passes to the next beneficiary as if you predeceased. However, since beneficiaries don&#8217;t pay taxes on inheritances anyway, the main reason to disclaim is estate planning \u2014 perhaps to pass assets directly to your children instead.\n            <\/div>\n        <\/div>\n\n        <div class=\"vftc-faq-item\">\n            <div class=\"vftc-faq-question\">\n                Do common-law partners get the same tax treatment as married spouses?\n                <div class=\"vftc-faq-toggle\">\n                    <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                        <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M19 9l-7 7-7-7\"><\/path>\n                    <\/svg>\n                <\/div>\n            <\/div>\n            <div class=\"vftc-faq-answer\">\n                Yes \u2014 for tax purposes, common-law partners receive identical treatment to legally married spouses. The same rollover rules apply for RRSPs, principal residences, and capital property transfers. Just make sure the will explicitly names the common-law partner to avoid any estate disputes.\n            <\/div>\n        <\/div>\n\n        <div class=\"vftc-faq-item\">\n            <div class=\"vftc-faq-question\">\n                What happens if someone dies without a will in Canada?\n                <div class=\"vftc-faq-toggle\">\n                    <svg fill=\"none\" stroke=\"currentColor\" viewBox=\"0 0 24 24\">\n                        <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M19 9l-7 7-7-7\"><\/path>\n                    <\/svg>\n                <\/div>\n            <\/div>\n            <div class=\"vftc-faq-answer\">\n                The estate is distributed according to provincial intestacy laws, which prioritize spouses and children. The tax implications remain the same \u2014 deemed disposition, capital gains, RRSP inclusion. The main difference is the court appoints an administrator instead of an executor named in a will, which adds time and legal costs to settling the estate.\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n<script>\ndocument.addEventListener('DOMContentLoaded', function() {\n    const faqItems = document.querySelectorAll('.vftc-faq-item');\n    \n    faqItems.forEach(item => {\n        item.addEventListener('click', function() {\n            const isActive = this.classList.contains('active');\n            \n            \/\/ Close all items\n            faqItems.forEach(i => i.classList.remove('active'));\n            \n            \/\/ Open clicked item if it wasn't active\n            if (!isActive) {\n                this.classList.add('active');\n            }\n        });\n    });\n});\n<\/script>\n","protected":false},"excerpt":{"rendered":"<p>Inheritance Tax Canada 2026 The truth about what you actually pay when inheriting assets \u2014 spoiler: it&#8217;s not what you think Here&#8217;s the deal \u2014 you just inherited your aunt&#8217;s cottage, or maybe your parents&#8217; investment portfolio, and now you&#8217;re sweating about how much the government&#8217;s going to take. Let me save you some stress [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":["post-1200","post","type-post","status-publish","format-standard","hentry","category-special-taxes"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":8}},"_links":{"self":[{"href":"https:\/\/truenorthbenefits.ca\/taxes\/wp-json\/wp\/v2\/posts\/1200","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/truenorthbenefits.ca\/taxes\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/truenorthbenefits.ca\/taxes\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/truenorthbenefits.ca\/taxes\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/truenorthbenefits.ca\/taxes\/wp-json\/wp\/v2\/comments?post=1200"}],"version-history":[{"count":0,"href":"https:\/\/truenorthbenefits.ca\/taxes\/wp-json\/wp\/v2\/posts\/1200\/revisions"}],"wp:attachment":[{"href":"https:\/\/truenorthbenefits.ca\/taxes\/wp-json\/wp\/v2\/media?parent=1200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/truenorthbenefits.ca\/taxes\/wp-json\/wp\/v2\/categories?post=1200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/truenorthbenefits.ca\/taxes\/wp-json\/wp\/v2\/tags?post=1200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}