What becomes payable
Tax arising from the deemed disposition of certain property, debts, funeral costs, professional fees for settling the estate, and sometimes duties tied to a transfer. Several of these amounts are due before assets can be sold.
The deemed disposition
At death, certain property is deemed disposed of at its then value: a rental building, a cottage, a securities portfolio with accrued gains, an RRSP or RRIF not rolled to a spouse. The tax hits a gain that produced no cash.
The spousal rollover
A transfer to a surviving spouse generally defers the tax rather than eliminating it. The bill reappears on the second death, often larger and with no spouse left to defer it again.
The cash-flow gap
Illiquid assets — a building, a business, a family cottage — do not sell quickly or at a time of your choosing. An estate forced to sell under pressure realizes less than the property is worth.
What life insurance provides
A death benefit arrives in cash, generally tax-free, and quickly where beneficiaries are designated. It funds the tax and the fees so heirs are not forced to sell.
Planning is a joint effort
A notary drafts the will and mandates, a tax specialist quantifies the latent tax, a registered representative structures the coverage. CompareTaux drafts no deed and issues no opinion: we refer you to the authorized professionals.
No rate, price, or recommendation on this page. Amounts and limits change: verify them with official sources before deciding.