That's not entirely accurate: the CRA requires "deemed disposition" on all your assets at the time of death.

Basically your estate has to pay up all pending taxes / capital gains as if it sold all its property at the time of death.

But held cash assets belonging to the estate and passed onto children/spouse are not taxed.

You have a fundamental misunderstanding of the super rich if you think that hard currency represents any significant fraction of their assets, late in life.

It's only a concern for the middle class, and there are other rules that cover them.

Right, the estate just pays the taxes it would have paid if the person had been alive. That seems more fair.