2002 Income Tax Severed Letter 2002-0131951 - STRUCTURED SETTLEMENT

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues: minor change to request father (who is a claimant) be included in the structure settlement

Position: allow father to be included

Reasons: all conditions of IT-365R2 paragraph 5 are met - it has been proven that father is a claimant at law

XXXXXXXXXX 2002-013195

XXXXXXXXXX, 2002

Dear XXXXXXXXXX:

Re: Supplementary Advance Income Tax Ruling
Structured Settlement
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX

This is in reply to your facsimile of XXXXXXXXXX, and is supplemental to our advance income tax ruling number 2002-011993 dated XXXXXXXXXX, 2002 (the "Ruling").

As a result of your letter, the following changes will be made to the Ruling:

1. In the Re: title after XXXXXXXXXX ("Individual B") - XXXXXXXXXX add:

"XXXXXXXXXX ("Individual C") - XXXXXXXXXX "

2. After the first sentence of paragraph 3 add:

"The plaintiffs sought damages for nursing and attendant care, homemaking services and housekeeping services "in trust" to the plaintiffs to be paid to their family or friends in respect of services rendered to Individual A. The Defendants have acknowledged in the settlement documents that Individual C (parent of Individual A) is entitled to such payments and you have advised us that Individual C is a claimant in the litigation at law."

3. In paragraph 5 after point B. add:

"C. To Individual C:

Lifetime monthly payments of $XXXXXXXXXX commencing on XXXXXXXXXX , which payments are guaranteed to be made to and including XXXXXXXXXX ."

4. In the second sentence in paragraph 6 the words "above in 5.A.(a) and (c) and B" are deleted and replaced with the words "above in 5.A.(a) and (c), B. and C".

5. In the first sentence of paragraph 7 the word "XXXXXXXXXX " is deleted and replaced with the word "XXXXXXXXXX ".

6. In subparagraph (a) of paragraph 8 delete the final word "and".

In subparagraph (b) of paragraph 8 delete "." and replace with "; and".

In paragraph 8 after subparagraph (b) add:

"(c) to Individual C, or XXXXXXXXXX estate."

7. In the Ruling Given paragraph, in the seventh line, the words "and individual B" will be deleted and replaced with the words ", individual B and individual C".

Notwithstanding the above change, we confirm that the Ruling will continue to be binding on the Canada Customs and Revenue Agency in the manner described therein.

Yours truly,

XXXXXXXXXX
for Director
Partnerships Section
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch

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