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.
This is in reply to your letter Of February 16, 1990 concerning the abovementioned subject.
Your questions are answered in the order given in your letter.
- 1. In our reply of November 3, 1989 to your letter of October 2, 1989, we considered all the situation listed in your letter, including situations 4 and 8, in our comments made in paragraphs 1 through 3. Since the two situations you mention were considered in our reply, we are of the view that no additional comment is warranted.
- 2. As long as the trust otherwise satisfies the requirements of paragraph 70(6)(b) of the income Tax Act and if the will directs the establishment of a trust for the spouse and its terms, but leaves to the executor the discretion to retain such assets of the estate that will constitute the trust property. a spousal trust will exist.
- 3. The opinion given by our Department in its letter of August 9, 1988 deals with "Gift to Charity after Death", where a will provides that the executors may, in their discretion, make gifts to charitable foundations. The question was whether the taxpayer was entitled to deduct in his terminal return any amount gifted by the executors. Said question, in our view, is to be distinguished from the questions dealt with in our opinion given to you which deals with the discretion given to executors in a spousal trust. Accordingly, since the letters deal with different subjects, the views expressed in each letter need not be reconciled.
We trust the above comments will be of assistance to you.
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© Her Majesty the Queen in Right of Canada, 1990
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© Sa Majesté la Reine du Chef du Canada, 1990
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