12 December 1989 Memorandum (May 1990 Access Letter, ¶1207)

Where an employee held unexercised employee stock options at the time of his death, no amount will be included in the income of the deceased or the estate in respect of their value, whether under ss.7(1)(c), 70(2), 70(5), or otherwise. S.7(1)(c) does not apply because the employee is deceased at the time the estate exercises the options. The ACB of the options to the estate is fair market value by virtue of s. 69(1)(c).

An unexercised employee stock option held by an employee at the time of his death is not a "right or thing" because it is a right to purchase a share at a specified price, and not a right to an amount which would have been included in income on exercise or disposition of the right.