An estate freeze can be accomplished by various techniques. Which of the following techniques will NOT involve immediate tax consequences at the time of the freeze?

Question

Quizplus · Accepted Answer

A transfer of capital assets with accrued gains to a corporation using ITA 85 (Income Tax Act, Section 85) can be done on a tax-deferred basis, meaning there are no immediate tax consequences at the time of the transfer. This allows for a rollover of the assets at their adjusted cost base rather than their fair market value, avoiding immediate capital gains tax.

An Estate Freeze Can Be Accomplished by Various Techniques