13 October 2000 Internal T.I. 2000-0031107 - Post Martem Estate Planning -- summary under Subsection 40(3.6)

"Subsection 40(3.6) will not generally apply where all the shares of a corporation held by an estate are disposed of to the corporation which, immediately following a disposition is controlled by the legal representative of the estate in his personal capacity, unless, immediately after the disposition the corporation is controlled, directly or indirectly in any manner whatever (as defined in subsection 256(5.1)) by the estate. "We assumed that you share our views that the demand promissory note issued as consideration would not result in the Estate having factual control ... ."