CRA confirms that a spousal trust can have a final distribution date 36 months after testator’s death

When asked, CRA confirmed that a trust can qualify as a spousal trust for purposes of s. 70(6) even if the spousal trust provided for under the testator’s will specifies a final distribution date which is 36 months (or fewer) after the date of death. The questioner may have been confused by the stipulation in s. 70(6)(b) that the estate property must vest indefeasibly in the spouse or spousal trust within 36 months of death (subject to CRA extension).

Neal Armstrong. Summary of 20 April 2016 T.I. 2015-0601141E5 under s. 70(6)(b).