A shareholders' agreement gives children the right to acquire the shares of a farm corporation for $1 after their father's death. If the children exercise their right to purchase, are those shares transferred or distributed to the children as a consequence of the father's death for the purposes of subsection 70(9.2)? CRA responded:
[T]he acquisition of the shares by a child would be a result of the exercise of the right to purchase arising on death, and not be a consequence of the death of the father. Consequently, subsection 70(9.2) would not apply …