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 (one of which had been used as the home of him and his spouse, Ms. X), devolved to her 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 finding 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, CRA stated:
The fact that there are two different civic numbers … is an indication that there are two housing units. However, other elements may also come into play, such as separate entrances, separate heating systems, separate hot water tanks, a tax account with two civic addresses, etc. … [W]e have assumed that the Immovable had two separate housing units.
CRA went on to indicate that the principal residence exemption could be claimed based on the specified beneficiary rule.