I-3 - Taxation Act

Section 656.6 Disposition versions

2015-10-21

656.6. (Repealed).

1994, c. 22, s. 228; 1996, c. 39, s. 273; 2015, c. 21, s. 215.

2006-03-01

656.6. For the purposes of section 656.5, a beneficiary under a trust is an individual who is beneficially interested in the trust, except that an individual is deemed not to be a beneficiary under a trust at a particular time

(a)  where

i.  the interests in the trust at the particular time of all individuals who would, if this chapter were read without reference to this paragraph, be exempt beneficiaries under the trust are subject to the exercise of a discretionary power by a person,

ii.  the exercise of, or the failure to exercise, the discretionary power referred to in subparagraph i, under the terms of the trust after the particular time, may terminate the interests in the trust of the following persons, before the time at which the last of those persons dies and without any of those persons enjoying any benefit under the trust after the particular time:

(1)  any individual referred to in subparagraph i; and

(2)  any other individual who is a child of a deceased individual who, if this chapter were read without reference to this paragraph, would have been an exempt beneficiary under the trust at any time before the particular time, and

iii.  the trust was created after 11 February 1991 or subparagraph ii applies in respect of the trust because of a variation of the terms of the trust occurring after that date; or

(b)  where it is reasonable to consider that one of the main purposes for the creation of the interest of the individual in the trust was to defer the day determined in respect of the trust under subparagraph a.1 or b of the first paragraph of section 653.

1994, c. 22, s. 228; 1996, c. 39, s. 273.