Principal Issues: Whether a step-parent continues to be related to his adult step-son after the death of the parent of the step-son.
Position: No.
Reasons: This position is consistent with paragraph 6 of Interpretation Bulletin IT-419R2 which states that where an individual's marriage is dissolved by the divorce or the death of the spouse, the individual will cease to be "connected by marriage" or to be "connected by blood relationship" to the parents and any siblings of the deceased spouse.
XXXXXXXXXX 2005-011472
Fiona Harrison
May 19, 2005
Dear XXXXXXXXXX:
This is in reply to your letter of January 24, 2005, wherein you requested a technical interpretation with respect to the definition of "related persons" under subsection 251(2) of the Income Tax Act (the "Act").
In particular, you enquire as to whether a step-parent ("B") is still related to an adult step-child ("A") after the death of the legal parent of A ("F"). In your particular situation, A would not otherwise qualify as a child of B, under subsection 252(1) of the Act, because A was at no time wholly dependent on B and was not adopted in law or in fact by B.
Consistent with the position stated in paragraph 6 of Interpretation Bulletin IT-419R2, it is our position that, where B is related to A pursuant to paragraph 251(6)(b) because he is connected by marriage to A, where B's marriage is dissolved by the death of F, B will cease to be related to A.
As noted in Information Circular 70-6R5 issued on May 17, 2002, these comments are not binding on the Canada Revenue Agency.
Yours truly,
Mark Symes
Manager
Corporate Reorganizations Section
Reorganizations and Resources Division
Income Tax Rulings Directorate