If X settles a trust in 2013 with property and then in 2017 X, and Y, contributes more property to the trust. Are such contributions considered to fall under the word “settles”? CRA responded:
Any transfer of assets into the trust by the original settlor (such as X in the question) upon its establishment or at a subsequent point in time, would be considered to fall within the meaning of the term "settles" and be subject to section 268.
We are currently reviewing the issue of whether contributions made by another person (such as Y in the question) would fall within the meaning of the term "settles" and be subject to section 268.