,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,tax ,paya# 0an ,9t] ,vivos ,tru/
,numb]3 ,,it-#djf;,r#b
,date3 ,may #aa1 #aiij
,ref];e3 ,subsec;n #abb7#b7 7al sec;ns
  #aag1 #aag.a & #abg.ec1 subsec;ns
  #if7#a71 #ajd7#b71 #ajd7#ah71
  #abb7#a71 #abb7#a.a71 #adi7#e7 &
  #bdh7#a71 & p>agraphs #abe7#g77d7 &
  7e77

               ,applic,n
    
  ,? bullet9 c.els & replaces ,9t]pret,n
,bullet9 ,,it-#djf;,r dat$ ,june #ba1
#aihb4 ,curr5t revi.ns >e 9dicat$
0v]tical l9es4


                                      #a
                ,summ>y              a#a
    
  ,? bullet9 sets \ ! rates ( tax paya#
09t] vivos tru/s4 ,x al 4cusses !
circum/.es 9 : 9t] vivos tru/s e/abli%$
2f ,june #ah1 #aiga may rcv m fav\r$
tr1t;t 02+ tax$ at graduat$ 9dividual
rates4

          ,4cus.n & ,9t]pret,n
           7p>agraphs #a-ac7
    
#a4 ,an 9t] vivos tru/ is subject 6a
  flat rate ( f$]al tax on xs am.t taxa#
  =! ye> equival5t 6! hi<e/ rate =
  9dividuals1 except ": all (! 3di;ns
  set \ 9 subsec;n #abb7#b7 >e met 0!
  tru/ 7see #b 2l74 ,= #aihh & subsequ5t
  tax,n ye>s1 subsec;n #abb7#a7 imposes
  a f$]al tax rate ( #bi p]c5t on 9t]
  vivos tru/s4 ,=! #aihe 6#aihg tax,n
  ye>s1 ! rate 0 #cd p]c5t4 ,0virtue (
  subsec;n #abb7#a.a71 an 9t] vivos tru/
  may n claim ! p]sonal tax cr$its
  provid$ 9 sec;n #aah4               #b
             ,,it-#djf;,r#b          b#a
#b4 ,": an 9t] vivos tru/ 7o!r ?an a
  mutual fund tru/7 meets all (! 3di;ns
  set \ 9 subsec;n #abb7#b71 x is tax$
  at ! graduat$ f$]al tax rates =
  9dividuals : >e set \ 9 sec;n #aag4 ,=
  #aihh ^? rates >e3 #ag p]c5t on ! am.t
  taxa# up 64#bg1ejj1 #bf p]c5t on !
  next 4#bg1ejj1 & #bi p]c5t on ! am.t
  taxa# 9 excess ( 4#ee1jjj4 ,= #aihi &
  subsequ5t tax,n ye>s1 sec;n #aag.a
  e/abli%es an 9dex+ =mula = adju/+ ^!
  doll> values 6reflect 9cr1ses 9 !
  ,3sum] ,price ,9dex 9 excess ( #c
  p]c5t4 ,! 3di;ns ( subsec;n #abb7#b7
  >e met if ! tru/3
  7a7 0 e/abli%$ 2f ,june #ah1 #aiga
    7see #c & #d 2l71
  7b7 0 resid5t 9 ,canada on ,june #ah1
    #aiga & )\t 9t]rup;n "!af until ! 5d
    (! tax,n ye> 7see #e 2l71
  7c7 did n c>ry on any active busi;s 9
    ! ye> 7see #f & #g 2l71
  
                                      #c
             ,,it-#djf;,r#b           #b
  7d7 has n rcvd any prop]ty 0way ( gift
    s9ce ,june #ah1 #aiga 7see #h 2l71 &
  7e7 has n1 af ,june #ah1 #aiga1 9curr$
    7;i7 any debt or
    7;ii7 any o!r oblig,n 6pay an am.t1
      to1 or gu>ante$ by1 any p]son )
      :om any b5efici>y (! tru/ 0 n d1l+
      at >m's l5g?4
#c4 ,p>agraph #abb7#b77a7 requires !
  tru/ 6h be5 e/abli%$ 2f ,june #ah1
  #aiga4 ,v>i,ns 9 ! t]ms (! tru/ m/ 2
  exam9$ 6det]m9e if a "picul> *ange is
  ( s* a nature z 63/itute ! e/abli%;t
  (a new1 su3essor tru/4 ,": a tru/ 0
  e/abli%$ 2f ,june #ah1 #aiga1 a
  subsequ5t *ange 9 "o or m (! tru/ees
  wd n cause ! tru/ 6be view$ z a new
  tru/ z (! date (! *ange4 ,3v]sely1 "u
  ! provi.ns ( subsec;n #adi7#e71 an 9t]
  vivos tru/ t is deem$ 6h be5 cr1t$ 9
  respect (a club1 society or associ,n
  _c h -e 96exi/;e prior 6! 5d ( #aiga
  ev5 ?\< ! club1 society or associ,n 0
  9 exi/;e prior 6,june #ah1 #aiga4   #d
             ,,it-#djf;,r#b          a#b
#d4 ,": a tru/ 0 9 exi/;e prior 6,june
  #ah1 #aiga &1 on or af t date1 a
  second 9t] vivos tru/ 0 cr1t$1 )!
  circum/.es (! two tru/s 2+ s* t !
  3di;ns specifi$ 9 subsec;n #ajd7#b7 >e
  met1 ! two tru/s may 2 designat$ 0!
  ,m9i/] z 2+ "o tru/ & t tru/ w n meet
  ! require;ts ( subsec;n #abb7#b74 ,!
  cre,n (a second tru/1 9 ^! circum/.es1
  may 2 tantam.t 6a 3tribu;n ( a4i;nal
  prop]ty 6! f/ tru/1 : is a 4qualify+
  ev5t z specifi$ 9 p>agraph
  #abb7#b77d74
#e4 ,p>agraph #abb7#b77b7 requires !
  tru/ 6h be5 resid5t 9 ,canada on ,june
  #ah1 #aiga & 6h rema9$ a resid5t (
  ,canada at all "ts "!af4 ,= ? purpose1
  ! normal rules = det]m9+ ! resid;e (a
  tru/ >e applica#4 ,see ! curr5t v].n (
  ,,it-#ddg 5titl$ ,resid;e (a ,tru/ or
  ,e/ate4
#f4 ,z 9dicat$ 9 p>agraph #abb7#b77c71 a
  tru/ fails 6meet ! require;ts (
  subsec;n #abb7#b7 if x c>ri$ on     #e
             ,,it-#djf;,r#b          b#b
  any active busi;s 9 ! ye>4 ,9 subsec;n
  #bdh7#a71 8active busi;s0 is def9$
  6m1n any busi;s c>ri$ on o!r ?an a
  8specifi$ 9ve/;t busi;s0 or a 8p]sonal
  s]vices busi;s04 ,s9ce ea* (! exclud$
  types ( busi;s c only 2 c>ri$ on 0a
  corpor,n 7see p>agraphs #abe7#g77d7 &
  7e771 any busi;s c>ri$ on 0a tru/ 9 !
  ye> is an active busi;s4 ,! ^w 8ye>0 9
  ? 3text has ref];e 6! tax,n ye> (!
  tru/1 i4e41 ! cal5d> ye>1 & n ! fiscal
  p]iod ( any busi;s4 ,unlike ! o!r
  require;ts ( subsec;n #abb7#b7 ":1 if
  any "o ( !m is n met =a "picul>
--------------------------------------#c
  ye> ! tru/ 2comes subject 6tax,n "u
  subsec;n #abb7#a7 n only 9 t ye> b al
  9 all subsequ5t ye>s1 a failure 6meet
  ! require;t 9 p>agraph #abb7#b77c7 9
  "o ye> does n necess>ily a6ect ! tru/
  9 subsequ5t ye>s4
#g4 ,": ! tru/ is a "pn] 7:e!r a g5]al
  or limit$ "pn]7 9 a "pn]%ip : c>ries
  on a busi;s1 ! tru/ & ea* (! o!r    #f
             ,,it-#djf;,r#b          a#c
  "pn]s is view$ z c>ry+ on t busi;s4 ,!
  assump;n 9 subsec;n #if7#a71 "nly1 t !
  "pn]%ip1 z 4t9ct f ! "pn]s1 is 6be
  view$ z if x 7 a sep>ate p]son t
  c>ries on ! busi;s1 is only =! purpose
  set \ 9 subsec;n #if7#a7 & has no
  relev.e = purposes ( subsec;n
  #abb7#b74
#h4 ,9 p>agraph #abb7#b77d7 "! is !
  require;t t ! tru/ m/ n h rcvd any
  prop]ty 0way ( gift af ,june #ah1
  #aiga4 ,= ? purpose1 ! ^w 8gift0 is n
  3sid]$ 69clude a prop]ty rcvd z a
  2que/ "u ! w (a dec1s$ taxpay] or "u !
  t]ms (a te/a;t>y tru/1 ev5 ": ! dec1s$
  taxpay] 0 ! settlor ( 7or o!r
  3tributor to7 ! 9t] vivos tru/ rcvg !
  prop]ty4
#i4 ,9 p>agraph #abb7#b77e7 x is provid$
  t a tru/ 2comes subject 6subsec;n
  #abb7#a7 if1 af ,june #ah1 #aiga1 x
  9curr$ any debt or any o!r oblig,n
  6pay an am.t 6any p]son ) :om any
  b5efici>y (! tru/ 0 n d1l+ at       #g
             ,,it-#djf;,r#b          b#c
  >m's l5g?4 ,? rule applies al ": !
  debt or o!r oblig,n (! tru/ is
  gu>ante$ 0s* a p]son4 ,! tru/ wd n 2
  3sid]$ 6h 9curr$ an 8oblig,n 6pay an
  am.t0 9 ! s5se 3templat$ 0subp>agraph
  #abb7#b77e77;ii7 ":1 9 return = imm
  pay;t ( fair m>ket value 3sid],n1 a
  tru/ acquires prop]ty or assets f a
  p]son ) :om any b5efici>y (! tru/ 0 n
  d1l+ at >m's l5g?4 7,= fur!r 4cus.n (!
  m1n+ ( 8>m's l5g?01 see ! curr5t v].n
  ( ,,it-#dai47
#aj4 ,if a settlor 7or o!r 3tributor 6a
  tru/7 &a b5efici>y >e 3nect$ 0blood
  rel,n%ip1 m>riage or adop;n1 !n !y >e
  deem$ n 6d1l ) ea* o!r at >m's l5g?4
  ,ev5 if ! settlor 7or o!r 3tributor7
  is n s relat$ 6any b5efici>y1 !
  circum/.es may 9dicate t ! settlor 7or
  o!r 3tributor7 & at l1/ "o b5efici>y d
  n 9 fact d1l ) ea* o!r at >m's l5g?4
  ,9 ei ( ^! situ,ns1 if an am.t is [+
  0! tru/ 6! settlor 7or o!r 3tributor
  6! tru/71 or if ! tru/ assumes      #h
             ,,it-#djf;,r#b          c#c
  responsibil;y = any debt or o!r
  oblig,n gu>ante$ 0s* a p]son1 !
  require;t 9 p>agraph #abb7#b77e7 wd n
  2 met4
#aa4 ,! debts or o!r oblig,ns (a tru/
  ref]r$ 6in #i & #aj abv d n 9clude
  ord9>y op]at+ debts or
--------------------------------------#d
  bank loans 7o!r ?an ^? gu>ante$ 0or [+
  6a p]son n d1l+ at >m's l5g? )a
  b5efici>y74
#ab4 ,p>agraph #abb7#b77e7 is n 3trav5$
  0a debt or o!r oblig,n (! tru/ 6pay 6a
  b5efici>y an am.t requir$ 0! t]ms (!
  tru/1 provid$ x is pd \ 6! b5efici>y
  dur+ ! r1sona# "t ne$$ 64*>ge ! debt
  or oblig,n4 ,a r1sona# "t w usu,y n 2
  3sid]$ 6ext5d 2y ! 5d (! tax,n ye>
  foll[+ ! ye> 9 : ! debt or oblig,n
  2came paya# 0! tru/4 ,h["e1 ":
  subsec;n #ajd7#ah7 applies ) respect
  6! 9come (a tru/ 9 : a m9or b5efici>y
  has a ve/$ 9t]e/1 a r1sona# "t w usu,y
  n 2 3sid]$ 6ext5d 2y ! 5d (!        #i
             ,,it-#djf;,r#b          a#d
  tax,n ye> foll[+ ! ye> 9 : ! * r1*es !
  age ( major;y4
#ac4 ,=! purposes (! 8,alt]native
  ,m9imum ,tax01 p>agraph #abg.ec7#a77b7
  all[s an exemp;n ( 4#dj1jjj 6an 9t]
  vivos tru/ : meets ! crit]ia (
  subsec;n #abb7#b74 ,a s+le s* exemp;n
  m/ 2 allocat$ am;g multiple tru/s t
  >ose z a 3sequ;e ( 3tribu;ns 0! same
  9dividual4













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