I-3 - Taxation Act

Section 445 Disposition versions

2006-03-01

445. Where a trust created by the will of an individual would be a trust referred to in any of sections 440 to 441.2 but for the payment of the debts owing by the individual when he died or for provision for their payment, the following rules apply:

(a)  the time limit to file the fiscal return contemplated in paragraph c of subsection 2 of section 1000 is extended to 18 months after the individual’s death; and

(b)  where the legal representative makes a valid election under paragraph b of subsection 7 of section 70 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement), and lists, in the individual’s fiscal return referred to for that purpose in that paragraph, one or more properties, other than a net income stabilization account or a farm income stabilization account, that were, on or after the individual’s death and as a consequence thereof, transferred or distributed to the trust, the fair market value of which properties immediately after the individual’s death was not less than the debts of the individual, minus the amounts described in section 449, section 440 does not apply to the properties so listed and, notwithstanding the payment of, or provision for payment of, any outstanding debts of the individual at the time of the death, the trust is deemed to be a trust referred to in section 440.

1973, c. 17, s. 49; 1994, c. 22, s. 175; 1997, c. 85, s. 71; 2004, c. 21, s. 80.