Walter Passed Away This Year at the Age of 62

question 2

Essay

Walter passed away this year at the age of 62.
Previously, Walter had structured his will so that his wife would receive $80,000 in cash, and she would also receive his stocks and land to be held in a trust on he behalf. Additionally, Walter's 33 year old son, Steven, would receive a building t be held in a trust until Steven reached the age of 45.
The assets transferred to Walter's wife consist of a piece of land with an ACB of
$100,000 and a FMV of $300,000; and stocks valued at $200,000, with a cost base of $150,000.
The assets transferred to Steven consist of a building with an ACB of $200,000, UCC of $180,000, and a FMV of $300,000.
Required:
What are the tax consequences that will be recognized on Walter's tax return? Show all calculations.
What are the tax consequences for the assets transferred to Walter's wife?
What are the immediate tax consequences from the asset transfers to Walter's son Steven?

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Definitions:

Commercial Impracticability

A legal doctrine that excuses a party from performing a contract when events have occurred making performance excessively difficult, expensive, or harmful.

Frustration of Purpose

A legal doctrine that allows parties to be relieved from their contractual obligations if an unforeseen event undermines the contract's original purpose.

Substantial Performance

Contract performance that occurs when nearly all the terms of the agreement have been met, there has been an honest effort to complete all the terms, and there has been no willful departure from the terms of the agreement.

Unforeseen Circumstances

Events that a reasonable person would not be expected to anticipate.