Alex passed away in Ontario on June 10, 2025. His spouse, Lisa, survives him. Alex's Will
leaves everything to Lisa. At death, Alex had the following:
• Principal residence: $800,000 (joint with Lisa)
• RRSP: $300,000 (named estate as beneficiary)
• Non-registered investment account: $200,000 ACB, $400,000 FMV
• Private corporation shares: $0 ACB, $1,000,000 FMV
• Capital loss carry-forward: $200,000
• Earned income paid before death in 2025: $275,000
• Unpaid vacation pay: $30,000 (received after death)
Assume Lisa is the sole beneficiary of the estate and a resident of Ontario.
Questions:
1. 2. 3. 4. (3 marks) Identify two key tax or estate planning issues present in Alex's situation
and suggest a planning strategy to address each.
(2 marks) Should the RRSP be designated to the estate or directly to Lisa? Justify
your answer in terms of tax and probate.
(2 marks) For the private corporation shares, explain what pro-active measure she
may use to bump up her ACB.
(2 marks) How could Alex's capital loss carry-forward be utilized to reduce taxes