Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Does a trust established for a self-directed RRSP qualify as a "personal trust" per that definition in subsection 248(1).
Position TAKEN:
Yes
Reasons FOR POSITION TAKEN:
A trust estabished for a self-directed RRSP is an inter vivos trust. Finance Technical Notes (see subsection 248(1) definition of personal trust) indicate that an inter vivos trust will not be disqualified as a personal trust merely because the settlor of a inter vivos trust retains an interest in the trust. Similar technical interpretation given in respect of an EPSP (943213).
971672
XXXXXXXXXX G.W. Keable
(613) 957-2046
Attention: XXXXXXXXXX
January 27, 1998
Dear Sirs:
Re: Self-Directed RRSP and Personal Trust
This is in reply to your letter of June 17, 1997, wherein you requested a technical interpretation on whether a trust established for a self-directed RRSP meets the definition of "personal trust" in subsection 248(1) of the Income Tax Act (the "Act").
A personal trust as defined in subsection 248(1) of the Act includes an inter vivos trust in which no beneficial interest was acquired for consideration payable to the trust or to any person who has made a contribution to the trust. It is your view that a self-directed RRSP trust meets this definition because it is an inter vivos trust in which no beneficial interest was acquired for consideration. You have indicated that since all of the beneficial interests in such a trust are acquired by one person, subparagraph (b)(iii) of the definition deems the beneficial interest to be acquired for no consideration.
Whether a beneficial interest in a trust was acquired for consideration payable to the trust or to any person who has made a contribution to the trust is always a question of fact and such a determination can only be made after reviewing all of the circumstances in a particular case. However, since there is nothing particular in the Act preventing a self-directed RRSP trust from being a personal trust, generally we are of the view that a self-directed RRSP trust can qualify as a personal trust by reason of subparagraph (b)(iii) of that definition.
While we trust these comments will be of assistance, they do not constitute an advance income tax ruling and are not binding on Revenue Canada.
Yours truly,
for Director
Resources, Partnerships and Trusts Division
Income Tax Rulings and Interpretations Directorate
Policy and Legislation Branch
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