Income Tax Act — I-3.3 150
an excluded disposition) or disposes of a taxable Canadian property (otherwise than in an excluded disposition) in the year, or (iv) at the end of the year the individual’s HBP balance or LLP balance (as defined in subsection 146.01(1) or 146.02(1)) is a positive amount. Exception — trusts (1.2) Subsection (1.1) does not apply to a taxation year of a trust if the trust is resident in Canada and is an express trust, or for civil law purposes a trust other than a trust that is established by law or by judgement, unless the trust (a) had been in existence for less than three months; (b) holds assets with a total fair market value that does not exceed $50,000 throughout the year; (b.1) meets the following conditions: (i) each trustee is an individual, (ii) each beneficiary is (A) an individual (other than a trust) and is related to each trustee, or (B) a graduated rate estate (or would be a graduated rate estate in the year if the estate had properly designated itself as a graduated rate estate) of an individual who was a beneficiary described in clause (A) in the year of the individual’s death, (iii) the total fair market value of the property of the trust does not exceed $250,000 throughout the year and the only assets held by the trust throughout the year are one or more of (A) money, including deposits in a Canadian financial institution as defined in subsection 270(1), (B) a guaranteed investment certificate issued by a Canadian bank, trust company or credit union incorporated under the laws of Canada or of a province, (C) a debt obligation described in paragraph (a) of the definition fully exempt interest in subsection 212(3), (D) debt obligations issued by (I) a corporation, mutual fund trust or limited partnership the shares or units of which are listed on a designated stock exchange in Canada, (II) a corporation the shares of which are listed on a designated stock exchange outside Canada, or (III) an authorized foreign bank that are payable at a branch in Canada of the bank, (E) a share, debt obligation or right listed on a designated stock exchange, (F) a share of the capital stock of a mutual fund corporation, (G) a unit of a mutual fund trust, (H) an interest in a related segregated fund trust (within the meaning assigned by paragraph 138.1(1)(a)), (I) an interest as a beneficiary under a trust, all the units of which are listed on a designated stock exchange, (J) personal-use property of the trust, (K) a right to receive income or gains on property described in clauses (A) to (J), or (L) an exempt policy (as defined in subsection 12.2(11)) issued by a Canadian life insurer, the fair market value of which is to be determined by its cash surrender value; (c) is required under the relevant rules of professional conduct or the laws of Canada or a province to hold funds for the purposes of an activity that is regulated under those rules or laws, provided (i) the trust is not maintained as a separate trust for a particular client or clients, or (ii) the only assets held by the trust throughout the year are assets described in clause (b.1)(iii)(A) or (B) with a total fair market value that does not exceed $250,000; (d) is a registered charity; (e) is a club, society or association described in paragraph 149(1)(l); (f) is a mutual fund trust; (g) is, for greater certainty, a related segregated fund trust, within the meaning assigned by paragraph 138.1(1)(a); (h) is a trust, all the units of which are listed on a designated stock exchange; (i) is prescribed to be a master trust; (j) is, for greater certainty, a graduated rate estate, or would be a graduated rate estate in the year if the estate had properly designated itself as a graduated rate estate; (k) is a qualified disability trust , as defined in subsection 122(3); (l) is an employee life and health trust; (m) is a trust described under paragraph 81(1)(g.3); (n) is a trust under or governed by (i) a deferred profit sharing plan, (ii) a pooled registered pension plan, (i