18 February 1998 External T.I. 9803255 - FEDERAL ESTATE TAX RELEASE

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues:

Is a Federal Estate Act release required on the purchase of a property?

Position:

No

Reasons:

The "Consent " and "Lien" provisions of the Estate Tax Act were suspended as of May 28, 1980.

5-980325

XXXXXXXXXX Karen Power, C.A.

Attention: XXXXXXXXXX

February 18, 1998

Dear Sirs:

Re: Federal Estate Tax Release

We are writing in response to your letter of February 4, 1998, wherein you requested our views on whether a Federal Estate Tax Act Release is required when a prior owner of a property died prior to January 1, 1970.

The Federal Government levied Dominion Succession Duties in respect of estates where the death of the taxpayer occurred on or after June 14, 1941 and prior to 1959. The Estate Tax Act was applicable where the death occurred after 1958 and prior to 1972.

Under the provisions of the above Acts, property of a deceased taxpayer could not be sold nor title to the property transferred before a "Consent" to transfer the property had been obtained by the legal representative(s) of the estate from this Department.

The "Consent" and "Lien" provisions of the Dominion Succession Duty Act and of the Estate Tax Act were suspended as of May 28, 1980 and it is no longer necessary for a Federal "Consent" to be obtained before the sale or transfer of property which was owned by a deceased taxpayer at the time of death.

This suspension may not necessarily apply to the administration of similar provisions enacted under Provincial Statutes.

We trust our comments will be of assistance to you.

Roberta Albert, C.A.

for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch

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