CRA confirms that the s. 70(6) rollover can apply to residuary (in addition to specific) bequests

In Bueti, the court appeared to state obiter (and without reference being made to s. 248(8)(a)) that a property in the residue of an estate is vested in the executors following death rather than in any residuary beneficiary.

In the course of responding to a ridiculous question as to whether the s. 70(6) rollover for a transfer of property to a spousal trust can apply where the estate distributes a “replacement property” to the spousal trust rather than property held by the deceased on death (no, it cannot), CRA stated that s. 70(6) (which inter alia requires that the subject property vest indefeasibly in the spousal trust) “could apply to a specific property in the residue of the estate.”

Neal Armstrong. Summary and translation of 2015-0596611C6 F under 9 October 2015 APFF Financial Strategies and Instruments Roundtable, Q. 9.