Folio S6-F4-C1, "Testamentary Spouse or Common-law Partner Trusts," 3 February 2022

1.2-1.3 Indefeasible vesting requirement. The capital property distributed to the spouse trust etc. must vest indefeasibly in it within 36 months...

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1.5 Making of election. The s. 70(6.2) must be made in the deceased’s regular income tax return for the terminal year of death, and is made on...

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90-day test

1.10 Under the definition of common-law partner, once individuals begin to cohabit in a conjugal relationship they are deemed to...

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Does not apply if no court order

1.15 Paragraph 248(9.1)(b) applies to a trust established by a court order, in relation to the taxpayer’s...

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1.21 Dividend exclusions. The effect of the dividend exclusions is that “a trust will not be precluded from qualifying as a spouse trust...

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Examples of testamentary debts

1.38 Testamentary debts also include funeral expenses. They can also include testamentary expenses such as...

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Examples where s. 70(7) cannot untaint

1.39 Not all tainted spouse trusts can be remedied by the rules provided in subsection 70(7). For example,...

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Application of s. 70(6) rules to NISA

1.60 The income which would otherwise arise as a result of a taxpayer’s death, by virtue of the deemed...

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Application of Art. XXIX B of the Canada-U.S. Treaty for US residents to access s. 70(6) rollover re TCP

1.63 … [F]or the rollover treatment in...

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Subsequent variation of trust does not prevent application of s. 104(4) on 21^st anniversary

1.68 It is the terms of the trust upon creation that...

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Election to report s. 104(4) et seq. income on terminal return

1.69 Paragraph 104(13.4)(b.1), permits the trust and the legal representative...

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