Lara Jensen was living with her common-law partner Portia at the time of her death in 2020. Lara's will established a group of equity securities that were to be transferred to a qualifying common-law partner trust. The securities had an adjusted cost base of $675,000 and a fair market value of $850,000 at the time of transfer. The securities are to be transferred to Portia five years after the date of Lara's death.
What are the tax consequences to Lara of the transfer made at the time of her death? What would be the tax consequences to Portia if, after she receives the securities from the trust, she sells them for $950,000?

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The Answer of Lara Jensen was living with her common-law partner Portia at the time of her death in 2020. Lara's will established a group of equity securities that were to be transferred to a qualifying common-law partner trust. The securities had an adjusted cost base of $675,000 and a fair market value of $850,000 at the time of transfer. The securities are to be transferred to Portia five years after the date of Lara's death.
What are the tax consequences to Lara of the transfer made at the time of her death? What would be the tax consequences to Portia if, after she receives the securities from the trust, she sells them for $950,000?

Lara Jensen Was Living with Her Common-Law Partner Portia at the Time