CRA indicates that the s. 73(1) rollover applies to non-jointly contributed property of a spouse to a joint spousal trust, and that s. 75(2) does not apply to 2nd-generation income

CRA confirmed that once a joint spousal or common-law partner trust is created with a contribution of jointly-owned property by an individual and the individual’s spouse or common-law partner, a subsequent contribution to that trust can be made solely by one of the spouses or partners and still be eligible for the s. 73(1) rollover.

Where each spouse/partner is a discretionary capital beneficiary such that s. 75(2) applies to both, CRA went on to indicate that s. 75(2) does not apply to second-generation income, because this income is not earned on property that was contributed to the trust, or property substituted therefor. For example, if the property received by the trust from a person is cash, and that cash is deposited by the trust into a bank account, the interest on the initial deposit would attribute to that person; but any interest earned on the interest left to accumulate in the bank account would not attribute.

Neal Armstrong. Summaries of 15 June 2022 STEP Roundtable, Q.11 under s. 73(1.01)(c)(iii) and s. 75(2).