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.
CANADIAN TAX CONFERENCE
QUESTION #32
Assume that a trust is required to distribute its assets on the death of the settlor. The beneficiary's children will receive the assets of the trust in the event that the beneficiary dies before the settlor. Does the Department consider that a disposition has occurred if the beneficiary consents to a variation of the trust deferring the distribution date to a specific date after the death of the settlor?
DEPARTMENT'S POSITION
While the Department's position would be determined based on the facts of each particular situation, in general it is our view that such a variation would not result in a disposition of property by the trust pursuant to paragraph 54(c) of the Act or a disposition of property by the beneficiary pursuant to subsections 106(2) or 107(1) or paragraph 54(c) of the Act.
New question no. 10 T236# Canadian Tax Foundation
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