CRA comments on “mental infirmity” requirement for a Henson trust
Registered plan proceeds potentially can be received on a rollover basis by a lifetime benefit plan trust for the benefit of a “mentally infirm” individual who was a spouse or common-law partner of the deceased plan holder, or a child or grandchild of the deceased who was dependent on the deceased for support by reason of that infirmity. CRA stated that mental infirmity was a question of fact that “does not require that the infirm individual be eligible for the disability tax credit,” and that “it must be possible to clearly demonstrate a causal connection between the mental infirmity and the dependence of the child or grandchild for support.”
Neal Armstrong. Summary of 3 December 2020 External T.I. 2019-0823751E5 under s. 60.011(1).