There is a deemed disposition of all capital assets on death of a Canadian taxpayer, meaning that tax has to be paid on the capital gain. There is an exception for assets that are passed to a spouse. Those assets are transferred at their adjusted cost base (ACB) so that there is no capital gain.
Capital Gains on Death
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There is a deemed disposition of all capital assets on death of a Canadian taxpayer, meaning that tax has to be paid on the capital gain.