Words and Phrases - "right to the use ... as a residence"

The 2016 NWMM introduced proposed s. (c.1)(iii.1)(A)(III) of the definition of principal residence which provided that in order for a property acquired by a life interest trust to qualify as a principal residence, the terms of the trust had to provide the specified beneficiary with “a right to the use and enjoyment of the housing unit as a residence throughout the period in the year that the trust owns the property.” After noting that s. (c.1)(iii.1) was dropped from the final Bill C-63 amendments, CRA nonetheless went on to answer the now-hypothetical question of the effect of a clause in the trust deed providing that “no one other than the life interest beneficiary has the right to use any of the trust property,” stating:

Trust terms that provide that no one other than the specified beneficiary has the right to use and enjoy the property of the trust would have fallen short of specifically meeting the key requirement in the 2016 NWMM that the specified beneficiary must have the right to use the housing unit owned by the trust as a residence.