CRA indicates that a contribution to a spousal trust after the spouse’s death would not cause it to cease to be a spousal trust or affect the deemed disposition dates for its property

We have published the questions which were posed, and summaries of the preliminary oral responses given, at the 2024 STEP CRA Roundtable.

In Q.1, CRA indicated that a contribution to a spousal or common-law partner trust (a “spousal trust”), made after the death of the spouse beneficiary, by a person other than the individual who had settled the trust, would not cause it to cease to be a spousal trust. In addition, the contribution would not have any effect on the timing of the deemed disposition of all the capital property of the trust: on the death of the spouse beneficiary (which had already occurred); and every 21 years thereafter pursuant to s. 104(4)(b)(iii) or (c).

Neal Armstrong. Summary of 4 June 2024 STEP Roundtable, Q.1 under s. 104(4)(a).