CRA indicates that the terms of an alter ego trust cannot permit charitable gifts before death

CRA indicated that if the terms of the deed of trust for one of the (alter ego etc.) trusts intended to qualify under ss. 73(1.01) and (1.02) provide for the possibility of making gifts to a registered charity before the death of the individual (and/or spouse or common-law partner), this would disqualify the trust for the purposes of the s. 73 rollover, even where no such gift in fact was made. Thus, a minor drafting bĂȘtise could have major adverse consequences.

Neal Armstrong. Summary of 5 October APFF Roundtable, Q.3 under s. 73(1.01)(c).