Larry died during 2020 and bequeathed a portfolio of equity securities to a qualifying common-law partner trust created in his will. Larry is survived by his common-law partner, David who is to receive the securities from the trust three years after Larry's death if they have not been sold. The portfolio, which had an adjusted cost base of $420,000, was valued at $723,000 on the date of his death.
Determine the tax consequences of the transfer, including the adjusted cost base of the portfolio in the trust and in David's hands if it is transferred.

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The Answer of Larry died during 2020 and bequeathed a portfolio of equity securities to a qualifying common-law partner trust created in his will. Larry is survived by his common-law partner, David who is to receive the securities from the trust three years after Larry's death if they have not been sold. The portfolio, which had an adjusted cost base of $420,000, was valued at $723,000 on the date of his death.
Determine the tax consequences of the transfer, including the adjusted cost base of the portfolio in the trust and in David's hands if it is transferred.

Larry Died During 2020 and Bequeathed a Portfolio of Equity