Principales Questions: Whether two trusts are affiliated with each other pursuant to subparagraph 251.1(1)(h)(i) when the contributor to one of the trusts dies after the trust was settled.
Position Adoptée: In the context of this file, we concluded that the two trusts are affiliated under subparagraph 251.1(1)(h)(i).
Raisons: Based on CRA response in document 2014-0534851C6 which indicated that for the purposes of the definition of "contributor" in subsection 251.1(3), CRA is of the view that, depending on the context, a deceased person may be considered to have, at a given time, made a loan or a transfer of property, either directly or indirectly, in any manner whatever, to or for the benefit of a trust. This position applies to any transfer of property made as a consequence of death of a taxpayer as well as to any loan or transfer of property made by a taxpayer, before his or her death.
