CRA confirms that the replacement of an executor due to death or inability does not result in a loss restriction event

CRA confirmed the position in IT-302R3 (archived) that where the executor, administrator, or trustee of an estate is replaced as a result of that person’s death or inability to fulfill their function, control of a corporation held by the estate would not be acquired solely as a result of that replacement. This position is not conditional on the replacement trustee being related or otherwise connected to the executor, administrator or trustee being replaced.

Neal Armstrong. Summary of 4 June 2024 STEP Roundtable, Q.4 under s. 251.2(2)(a).