Typically,
the answer to this question is no. Most often, spouses will have
their assets owned jointly. Upon death, total ownership of joint
assets will revert
to the surviving spouse. However, sometimes a person may have not
implemented proper planning techniques and tax may be triggered on some
assets. Probate may then also apply to these assets.
The
Income Tax Act does provide a spousal tax-free rollover on assets such as
RRSPs and RRIFs, investment portfolios, and capital property such as real
estate. Upon the second death of the spouses, a disposition would
occur and tax would then be payable.
