Inheritances are taxed especially in Ontario where it can now years to clean up estates. The CRA and the provincial government won't sign off until they wring every last penny they owed out of the estates. Probate which is now known as the Estate Administration Tax is applied to everything in one's estate right down to the tooth brush you owned. You can thank the provincial Liberal 's for that.  Ontario's problem is not revenue but spending. They stay up at night thinking of ways to squeeze more tax dollars out of you.