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 waiver of inheritance tax required on a transfer of property which was owned by a deceased taxpayer?
Position: No.
Reasons: The "Consent" and "Lien" provisions of the Estate Tax Act were suspended as of May 28, 1980.
XXXXXXXXXX M. Lemire
5-982468
Attention: XXXXXXXXXX
March 12, 1999
Dear Sirs:
Re: Waiver of Inheritance Tax
This is in reply to your letter of July 31, 1998 in which you requested our views on whether a waiver of inheritance tax is required before title to property which was owned by a deceased taxpayer is transferred. We apologize for the delay in responding to your letter.
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 his or her death.
This suspension may not be necessarily applied to the administration of similar provisions enacted under Provincial Statutes.
We trust our comments will be of assistance to you.
Yours truly,
Theresa Murphy
Manager
Trusts Section
Resources, Partnerships and Trusts Division
Income Tax Rulings and Interpretations Directorate
Policy and Legislation Branch
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