CRA refuses to grandfather an existing trust from an adverse policy change without an indication of reliance on its earlier position

After having taken a more favourable position between 1988 and 1995, CRA then indicated that it considered the settlement of a revocable living trust to give rise to a new full-blown trust over all the contributed property.  CRA refused to give the taxpayers the benefit of its more favourable previous policy respecting a revocable living trust that had been settled prior to 1988, stating that "it cannot be said that at the time, the subject taxpayers relied on opinions we subsequently expressed between 1988 and 1995."  Consequently, the trust was subject to the 21-year deemed realization rule based on the year of settlement.

Neal Armstrong.  Summary of 14 February 2014 Memo 2013-0490891I7 under s. 104(4).