CRA rules on a disclaimer resulting in a rollout of estate assets under an intestacy

An estate (that was a testamentary trust) holding appreciated assets has five grandchildren who would receive as residuary beneficiaries under the estate following the death of “Ms. A and Mr. B” (presumably siblings or siblings in law, and parents of the grandchildren). CRA ruled that a disclaimer by the grandchildren - resulting in a distribution of the residue of the estate assets to Ms. A and Mr. B on an intestacy – would not result in any of the grandchildren receiving proceeds of disposition, and that such distribution would occur under s. 107(2).

Neal Armstrong. Summary of 2016 Ruling 2015-0606771R3 under s. 107(2).