I-3 - Taxation Act

Section 651.3 Disposition versions

2017-02-08

651.3. For the purposes of the definition of “personal trust” in section 1, paragraph n of section 257, section 686 and the definition of “excluded right or interest” in section 785.0.1, the following rules apply:

(a)  an interest in a trust is not deemed to be acquired for consideration solely because it was acquired in satisfaction of any right as a beneficiary under the trust to enforce payment of an amount by the trust; and

(b)  where all the beneficial interests in a trust acquired by way of the transfer, assignment or other disposition of property to that trust were acquired by any of the persons described in the second paragraph, any beneficial interest in that trust acquired by such a person is deemed to be acquired for no consideration.

The person to which subparagraph b of the first paragraph refers is

(a)  one person; or

(b)  two or more persons who would be related to each other if

i.  a trust and another person were related to each other, where the other person is a beneficiary under the trust or is related to a beneficiary under the trust, and

ii.  a trust and another trust were related to each other, where a beneficiary under the trust is a beneficiary under the other trust or is related to a beneficiary under the other trust.

2003, c. 2, s. 154; 2004, c. 8, s. 132; 2017, c. 1, s. 150.

2006-03-01

651.3. For the purposes of the definition of “personal trust” in section 1, paragraph n of section 257, section 686 and the definition of “excluded right or interest” in section 785.0.1, the following rules apply:

(a)  an interest in a trust is deemed not to be acquired for consideration solely because it was acquired in satisfaction of any right as a beneficiary under the trust to enforce payment of an amount by the trust; and

(b)  where all the beneficial interests in an inter vivos trust acquired by way of the transfer, assignment or other disposition of property to that trust were acquired by any of the persons described in the second paragraph, any beneficial interest in that trust acquired by such a person is deemed to be acquired for no consideration.

The person to which subparagraph b of the first paragraph refers is

(a)  one person; or

(b)  two or more persons who would be related to each other if

i.  a trust and another person were related to each other, where the other person is a beneficiary under the trust or is related to a beneficiary under the trust, and

ii.  a trust and another trust were related to each other, where a beneficiary under the trust is a beneficiary under the other trust or is related to a beneficiary under the other trust.

2003, c. 2, s. 154; 2004, c. 8, s. 132.