CRA indicates that a U.S. revocable living trust is not a bare trust

CRA maintained its position (notwithstanding a submission that De Mond was to the contrary) that a (U.S.) revocable living trust is a true trust and not a bare trust given that it has remainder beneficiaries. CRA also indicated that as the capital interests of the remainder beneficiaries are not acquired as a consequence of death (i.e., although the death of the settlor of the trust results in them receiving their remainder interests, this does not occur under a will), s. 70(5)(a) does not deem them to acquire their capitol interests at fair market value. (S. 107 presumably applies, but this was not discussed.)

Neal Armstrong. Summary of 10 June 2016 STEP Roundtable, Q.10 under s. 104(1) and s. 70(5).