Brazeau Seller LawOttawa, ON · October 1, 2025Follow

When “No Inheritance Tax” Still Means a Big Tax Bill

A recent story out of Ontario has captured attention: a daughter was left with a $660,000 tax bill after both of her parents passed away in the same year. Many Canadians are surprised by this kind of outcome because they believe there is “no inheritance tax” in Canada. While it is true there is no separate estate or inheritance tax, our Income Tax Act requires that on death, most assets are treated as if they were sold at fair market value. This deemed disposition often triggers significant capital gains tax and, in the case of RRSPs and RRIFs, full income inclusion. In this family’s case...

This is a short preview. The article was written by Brazeau Seller Law and the full text is on their website.