At the time of Mr. X's death, the usufruct of all the property held by Mr. X, including his undivided share in a two-unit Immovable, devolved to his surviving spouse (Ms. X) and the bare ownership devolved to the children. Ms. X remained in her home (one of the units), and the Immovable was subsequently sold.
After indicating that, pursuant to s. 248(3)(a), on the death Ms. X acquired an income interest in a testamentary trust, and the children acquired a capital interest, and that, pursuant to s. 70(5), such trust acquired the Immovable at a deemed cost equal to the property’s FMV (subject to the application of the ITAR rules), given that the trust was not a spousal trust.