CRA discusses the procedure for requesting an extension of the 36-month vesting period under s. 70(6)

The rollover under s. 70(6) requires that the capital property of the deceased vest indefeasibly in e.g., the surviving spouse or testamentary spousal trust within 36 months of the death or such longer period as is granted by CRA. CRA indicated in this latter regard that:

• a letter should be submitted within the 36-month period
• it should include particulars including details that will provide the TSO with a clear picture of the reason for the extension request and
• CRA will consider the overall reasonableness of the extension request, and whether the duration of the extension is reasonable, based on the barriers faced by the legal representative in having the property vested indefeasibly in spouse, common law partner, or trust.

Neal Armstrong. Summary of 20 June 2023 STEP Roundtable, Q.14 under s. 70(6).