As of June 30, 2011, all the liabilities of Succession X have been paid and all the liquidator's duties have been completed, and its only asset of Succession X is cash, which is required to be divided equally between the two heirs (Mr. X's two children). However, Mr. A, the liquidator, will wait until the year 2025 before proceeding with distributing the money to the beneficiaries and liquidating Succession X. Is the period for proceeding with the liquidation reasonable? CRA responded:
Whether the time to liquidate an estate is reasonable is a question of mixed fact and law that requires a complete analysis of all the facts in a particular situation. Generally, a succession exists as long as it is not settled.
In this case, it is possible that as of June 30, 2011, the succession will be settled and cease to exist on that date. In such a case, the tax would be subsequently imposed at the level of the legatees of the estate.