CRA indicates that the expanded trust reporting requirements will extend to the reporting of contingent beneficiaries

Pursuant to Reg. 204.2(1)(a), a trustee of a trust is required to report information about each “beneficiary” of the trust, unless the trust is subject to one of the exceptions in s. 150(1.2) or an exception in s. 204.2(2) applies.

CRA was asked to comment on the meaning of “beneficiary” in the context of a query about the trust deed for a family trust providing that in the event that none of the parents and their issue survived, the trust assets went to extended family members. CRA indicated that, very generally, a beneficiary of a trust is a person, other than the protector, who has the right to compel the trustee to properly enforce the terms of the trust, regardless of whether that person’s right to the income or capital of the trust is immediate, future, contingent, absolute or conditional on the exercise of the discretion of any person – so that, accordingly, a beneficiary in the ordinary sense would include a beneficiary whose interest is contingent.

Neal Armstrong. Summary of 20 June 2023 STEP Roundtable, Q.4 under Reg. 204.2(1).