Elie Roth, Tim Youdan, Chris Anderson, Kim Brown, "Classification of Trusts for Income Tax Purposes", Chapter 2 of Canadian Taxation of Trusts (Canadian Tax Foundation), 2016.

Summary Under
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Personal Trust

Increase in value only/debt assumption (p. 59)

[T]he CRA [in 2015-0596841E5] appears to be of the view that a beneficial interest in a trust may...

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Summary Under
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Graduated Rate Estate - Paragraph (a)

GRE may terminate before 36 mos. (p. 62)

It appears that the 36-month period is an upper limit; therefore, an estate ceases to be a graduated rate...

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Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Testamentary Trust

Multiple testamentary trusts under will (p. 63)

[T]he estate of a deceased individual and other trusts funded from the estate generally qualify as...

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Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Testamentary Trust - Paragraph (d)

Purpose (p. 64)

[T]his rule [in para. (d)] was implemented to prevent beneficiaries in the top marginal tax bracket from lending money to a...

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Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Testamentary Trust - Paragraph (c)

Waiver as contribution (p. 66)

On the basis of the ruling in Greenberg Estate [97 DTC 1380], the CRA has stated that the waiver of income by a...

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Summary Under
Tax Topics - Income Tax Act - Section 122 - Subsection 122(1) - Paragraph 122(1)(c)

General effect of formula (p. 70)

[T]he amount: of the recovery tax is calculated in accordance with a complicated formula in paragraph 122(1) (c)...

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Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(2) - Paragraph 108(2)(a)

Satisfaction of redemption requirement (p. 72)

[T]he CRA has ruled that the redemption requirement was satisfied when a trust indenture provided...

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Summary Under
Tax Topics - Income Tax Act - Section 149.1 - Subsection 149.1(1) - Charitable Foundation

Public benefit requirement (p. 81)

There are two distinct components to the public benefit requirement. First, in general an objectively...

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Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1)

Non-application to bare trusts (p. 86)

[T]he non-applicability of the Act to bare trusts has been recognized by the courts. [fn 107: …Brookview...

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Summary Under
Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) - Paragraph 70(6)(b)

Right of spouse to enforce payment of income (pp. 90-1)

It seems that the spouse or common-law partner must each year be able to enforce payment...

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Summary Under
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2)

Waiver by spouse of entitlement to income under spousal trust (p. 92)

The terms of a spousal or common-law partner trust may include a provision...

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Summary Under
Tax Topics - Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(c)

Joint spousal trust (p. 100)

Paragraph 73(1.01)(c) might seem to indicate that only one spouse can transfer property to a particular joint spousal...

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Summary Under
Tax Topics - Income Tax Act - Section 127.41 - Subsection 127.41(1)

Numerical example of refundable tax (pp. 104-5)

Assume that a qualifying environmental trust has a single beneficiary in a taxation year and earns...

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Summary Under
Tax Topics - Income Tax Act - Section 138.1 - Subsection 138.1(1)

Overview

[U]nlike mutual funds, segregated funds cannot be structured as trusts because a life insurer is prohibited from acting as a trustee in...

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Summary Under
Tax Topics - Income Tax Act - Section 1 - Paragraph 20(1)(r)

Services rendered to subsidiary (p. 116)

[P]art XI.3 imposes a refundable tax on an RCA equal to 50 percent of the amount of any contributions to...

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