Transferring capital property to a spouse at cost, deferring tax to the survivor's death.
In Islamic law
Faraid gives a wife one eighth where there are children, so a full rollover of everything to a spouse would not reflect the shares. The tax advantage and the religious distribution can pull in opposite directions — a point to plan for deliberately.
In Canadian law
An automatic deferral of the deemed disposition where property passes to a spouse or a qualifying spousal trust. It is often the single largest tax lever in a Canadian estate.
We have not yet researched whether the four Sunni schools differ on this term, so we are not going to tell you either way. Where a specific case turns on it, ask a qualified scholar rather than relying on a general summary.
Canadian legal detail
Treadstone Law, an Ontario firm with a wills and estates practice, covers the Canadian side of this in more depth:
This is legal information only. For advice on your own circumstances, speak to a lawyer.
Citations & sources
Every factual claim on this page traces to a source below. Details change — check the original source before relying on any figure, fee or legal position. Anything under “further reading” is related material, not a source for what is stated here.
- Spousal trust tax deferral — Treadstone Law
- What is deemed disposition on death canada — Treadstone Law
- Deemed disposition death canada — Treadstone Law
- Deemed disposition on death canada what it means — Treadstone Law
- Wills & estates practice — Treadstone Law