The Tax Force
By Caitlin Lawrence
December 9th, 2025
Death and Taxes: In Canada, these two certainties collide in a particularly expensive way. Understand —and plan for— “deemed disposition”… before it’s too late.
While Canada doesn’t have a formal “estate tax” or “inheritance tax” like the United States, don’t let that fool you, the government assumes all your assets were sold at fair market value immediately before death, potentially triggering taxes that can exceed 50% of your estate’s value.
This concept is called deemed disposition, and combined with provincial probate fees, it represents one of the largest financial hits your family will face when you pass away. Yet according to recent studies, 54% of Canadians lack an estate plan, despite 76% saying it’s important to ensure their estate is taxed as little as possible.
