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.
SUBJECT: TESTAMENTARY TRUST DETERMINATION SECTION: 108(1)(h),
108(1)(i), 104(23)]
XXX 912971
A.Y. Ho
(613) 957-4796
Attention:
April 16, 1992
Dear Sirs:
This is in reply to your letter of October 24, 1991 wherein you requested our views on paragraphs 108(l)(i) and (h) of the Income Tax Act (the "Act") in a situation where the trust properties are not acquired until the death of a life tenant. We apologize for the delay in replying to your letter.
The situation you provided involves specific facts upon which we do not provide opinions. However, we can provide you with the following general comments.
Our Comments
In our opinion, a trust created in accordance with a will of an individual is considered as a trust created upon and in consequence of the death of the individual even though the properties are not received until a specified future date, e.g., until the death of a life tenant. If all the properties in the trust were contributed from the estate, the trust is considered as a testamentary trust, the settlor is considered to be the deceased individual and the ear end is determined in accordance with subsection 104(23) of the Act. Also, we do not regard the substitution of property nor the accumulation of property by earnings or growth in the interim period as property which is "contributed to the trust otherwise than by an individual on or after his death and as a consequence thereof".
We trust the above comments are of assistance.
Yours truly,
for Director
Manufacturing Industries, Partnerships
and Trusts Division
Rulings Directorate
Legislative and Intergoverrunental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1992
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© Sa Majesté la Reine du Chef du Canada, 1992
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