Deemed Disposition Calculator (Canada)
Model the tax cost of death across your portfolio — non-registered capital gains, principal residence exemption, RRSP/RRIF inclusion, provincial probate — with and without the spousal rollover.
Non-registered investments
Principal residence
Registered plans
Full FMV enters final-return income unless rolled to a qualifying spouse or dependant.
TFSA passes tax-free at death — informational only.
Deceased profile
Surviving spouse & rollover strategy
All capital property + RRSP/RRIF roll to spouse. No deemed gain triggered.
Spousal rollover saves $200,766 vs no rollover.
Probate in Ontario: No fee on first $50,000; 1.5% on the remainder.
Your strategy
Full spousal rollover
- Gross estate (probate base)
- $0
- Non-reg deemed gain
- $0
- Home gain after PRE
- $0
- RRSP / RRIF inclusion
- $0
- Taxable income (final return)
- $0
- Federal tax
- $0
- Provincial tax
- $0
- Probate fees
- $0
- Total cost of death
- $0
- Net to estate / heirs
- $0
Benchmark: no rollover
All assets deemed disposed at FMV
- Gross estate (probate base)
- $2,000,000
- Non-reg deemed gain
- $500,000
- Home gain after PRE
- $0
- RRSP / RRIF inclusion
- $200,000
- Taxable income (final return)
- $450,000
- Federal tax
- $120,935
- Provincial tax
- $50,582
- Probate fees
- $29,250
- Total cost of death
- $200,766
- Net to estate / heirs
- $1,799,234
Scope: Models ITA s.70(5) deemed disposition, s.70(6) spousal rollover, and RRSP/RRIF full inclusion on death with a surviving-spouse rollover alternative. Uses the catax PRE calculation for the principal residence formula (including the +1 bonus year). Probate is calculated against the gross estate less assets passing by beneficiary designation or survivorship under a full or home rollover.
Not advice: Deemed disposition outcomes depend on scheme rules, beneficiary designations, will drafting, spousal residency, and whether assets are held jointly. Confirm with a chartered accountant or estate lawyer before acting.
Frequently asked questions
What is deemed disposition at death in Canada?
Under ITA s.70(5), a deceased person is deemed to have disposed of all capital property at fair market value immediately before death. Any resulting capital gain is taxed on the deceased's final tax return at the 50% inclusion rate. The principal residence exemption can eliminate the gain on one home. RRSP/RRIF balances are included in full at the FMV on the date of death unless rolled over to a qualifying spouse or dependant.
Does the spousal rollover avoid capital gains tax on death?
Yes. Under ITA s.70(6), capital property transferred on death to a Canadian-resident spouse, common-law partner, or qualifying spousal trust rolls over at the adjusted cost base — no capital gain is triggered. The surviving spouse inherits the ACB and the deferred gain until they eventually dispose of the property or die. The same principle applies to RRSP/RRIF balances named to a qualifying beneficiary.
Are RRSPs taxed at death?
Yes, unless rolled over. The full fair market value of the RRSP/RRIF at death is included in the deceased's final-return income under ITA s.146(8.1) / s.146.3(6). For large balances, this alone can push the final return into the top marginal bracket. Naming a spouse, common-law partner, or financially dependent child with a disability as successor annuitant or beneficiary defers the inclusion.
Do Quebec estates pay probate fees?
No — or nearly none. Quebec notarial wills are not subject to probate. Non-notarial (English-form) wills require a court verification process with a ~$102 flat fee. For modelling purposes, Quebec probate is treated as $0 in this calculator. Manitoba also has $0 probate (abolished 6 November 2020). Every other province has a banded or proportional fee schedule.
Does the principal residence exemption still apply on death?
Yes. The deemed disposition on death is still a disposition for PRE purposes. If the home is fully designated for every year of ownership, the gain is fully exempt. If another property (a cottage, for example) was designated in some years, the PRE is pro-rated by the formula (1 + years designated) / years owned. See our Principal Residence Exemption Calculator for the detailed formula.