I-3 - Taxation Act

Section 768.2 Disposition versions

2017-02-08

768.2. For the purposes of sections 768, 768.1 and this section,

“beneficiary” under a trust includes a person beneficially interested in the trust;

“electing beneficiary” of a qualified disability trust for a taxation year means a beneficiary under the trust that for the year

(a)  makes an election described in subparagraph iii of paragraph a of the definition of “qualified disability trust”; and

(b)  is described in paragraph b of the definition of “qualified disability trust”;

“qualified disability trust” for a taxation year (in this definition referred to as the “trust year”) means a trust that meets the following conditions:

(a)  the trust

i.  is, at the end of the trust year, a testamentary trust that arose on and as a consequence of a particular individual’s death,

ii.  is resident in Canada for the trust year, and

iii.  has made, for the trust year, a valid election under clause A of subparagraph iii of paragraph a of the definition of “qualified disability trust” in subsection 3 of section 122 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), jointly with one or more beneficiaries under the trust;

(b)  each of the beneficiaries referred to in subparagraph iii of paragraph a is an individual named as a beneficiary by the particular individual in the instrument under which the trust was created and the following conditions are met in respect of each of those beneficiaries:

i.  subparagraphs a to c of the first paragraph of section 752.0.14 apply in respect of the beneficiary for the beneficiary’s taxation year (in this definition referred to as the “beneficiary year”) in which the trust year ends, and

ii.  the beneficiary does not jointly elect with any other trust, for a taxation year of the other trust that ends in the beneficiary year, to have that other trust qualify as a disability trust; and

(c)  none of the conditions of paragraphs a to c of section 768.1 has been met, in respect of the trust, for the trust year.

Chapter V.2 of Title II of Book I of Part I applies in relation to an election made under clause A of subparagraph iii of paragraph a of the definition of “qualified disability trust” in subsection 3 of section 122 of the Income Tax Act.

2017, c. 1, s. 204.