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ARTICLE · 16 OCTOBER 2019

CaseNotes For October, 2019

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These include circumstances where there is a high degree of non-compliance risk, uncertainty or large tax reserves.

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  • 2019 Ruling-0795761R3-Variation of a Trust- by Jeanne Posey

This CRA Ruling concerns a fairly straight forward 21-year trust deemed disposition plan which required an amendment to the trust deed. The CRA was asked to rule on whether the amendment results in a "resettlement" of the trust and whether subsection 107(2) applies to the trust property distribution.

Facts:

The existing trust (the "Existing Trust") was a Canadian resident trust settled by a non-arm's length party and met the definition of a "personal trust" pursuant to subsection 248(1) of the Act. The Existing Trust had dependent beneficiaries, perpetual beneficiaries, and charities as contingent beneficiary.

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