Bad drafting of spousal trusts can sometimes be handled
Drafting that provides for the payment of income to or “for the benefit” of a spouse likely does not taint a spousal trust.
A disclaimer should result in the disclaiming beneficiary being treated as never having had the property or interest in question, so that it should be possible for a disclaimer of a bad potential entitlement to untaint an otherwise tainted spousal trust. A contrary view expressed in Gilbert Estate was incorrect.
Purposes coming within the Pemsel charitable heads include a trust for one’s poor relations or needy employees, for research that increases and disseminates knowledge and for the support of the arts.
Neal Armstrong. Summaries of Elie Roth, Tim Youdan, Chris Anderson and Kim Brown, "Classification of Trusts for Income Tax Purposes", Chapter 2 of Canadian Taxation of Trusts, (Canadian Tax Foundation), 2016, including under s. 70(6)(b) and s. 149.1(1) – charitable foundation.