Principales Questions: 1. Does paragraph 70(5)(b) apply to determine the cost, to the estate of a deceased beneficiary, of a capital interest in a personal trust, where the estate acquired the interest from the sole beneficiary of the trust upon his death?
2. Does the cost, determined under paragraph 107(2)b), of a capital property acquired from a personal trust by the estate of a deceased beneficiary, reflect the cost to the estate of the capital interest in the trust, as determined under paragraph 70(5)b)?
3. When does the capital interest, not vested indefeasibly, of the sole beneficiary in a personal trust cease to exist?
4. What is the fair market value, immediately before a beneficiary's death, of an interest in a personal trust that is not vested indefeasibly to the beneficiary?
Position Adoptée: 1. Yes, if the interest in the trust was capital property of the beneficiary immediately before his death and if the estate acquired the interest in the trust as consequence of the death of the beneficiary.
2. Yes, provided that all the conditions are satisfied.
3. Depends on the trust indenture and applicable private law.
4. Question of fact. We cannot comment on the valuation of such interest.
Raisons: 1. Previous position.
2. Wording of subsection 107(2), of subparagraph 107(1.1)(b)(i), of the definition of cost amount of subsection 108(1) and of the definition of cost amount of paragraph 248(1)(b).
3. Previous positions.
4. Previous positions.