Words and Phrases - "class of beneficiaries"

a
89
b
44
c
86
d
56
e
43
f
31
g
20
h
15
i
77
j
2
k
2
l
32
m
57
n
29
o
40
p
82
q
3
r
78
s
95
t
47
u
16
v
10
w
23
y
2

7 October 1999 APFF Roundtable Q. 8, 9920960 F - CATÉGORIE DE BÉNÉFICIAIRES

Summary Under
Tax Topics - Income Tax Act - Section 104 - Subsection 104(2)
“class of beneficiaries” interpreted in accordance with its ordinary meaning/ s. 104(2) criteria

How does Revenue Canada interpret the expression "class of beneficiaries"? For instance, would members of the same family be considered the same class of beneficiaries?

CCRA indicated that, for purposes of making a determination under s. 104(2), the criteria examined include:

  • Whether it is clear that the settlor intended to create separate trusts under the provisions of the will or trust deed.
  • Whether the trusts have common beneficiaries.
  • Whether the assets of each trust are administered and accounted for separately.
  • The powers of the trustees.

The expression "class of beneficiaries" would be interpreted in accordance with its ordinary meaning. "Class" is defined in Webster's as "a group, set, or kind sharing common attributes" and in the Oxford dictionary as "a group of persons or things having some characteristics in common."

Members of the same family would be considered to be one class of beneficiaries.

Words and Phrases
class class of beneficiaries