Income Tax Act — I-3.3 108
18(1.1) for the year, and (b) the beneficiary is (i) the settlor of the trust, (ii) the spouse or common-law partner or former spouse or common-law partner of the settlor of the trust, or (iii) a child, grandchild or great grandchild of the settlor of the trust or the spouse or common-law partner of any such person; ( bénéficiaire privilégié ) qualified farm property [Repealed, 2014, c. 39, s. 28] qualified fishing property [Repealed, 2014, c. 39, s. 28] qualified small business corporation share [Repealed, 2014, c. 39, s. 28] settlor , (a) in relation to a testamentary trust, means the individual referred to in the definition testamentary trust in this subsection, and (b) in relation to an inter vivos trust, (i) if the trust was created by the transfer, assignment or other disposition of property thereto (in this definition referred to as property “contributed”) by not more than one individual and the fair market value of such of the property of the trust as was contributed by the individual at the time of the creation of the trust or at any subsequent time exceeds the fair market value of such of the property of the trust as was contributed by any other person or persons at any subsequent time (such fair market values being determined at the time of the making of any such contribution), means that individual, and (ii) if the trust was created by the contribution of property thereto jointly by an individual and the individual’s spouse or common-law partner and by no other person and the fair market value of such of the property of the trust as was contributed by them at the time of the creation of the trust or at any subsequent time exceeds the fair market value of such of the property of the trust as was contributed by any other person or persons at any subsequent time (such fair market values being determined at the time of the making of any such contribution), means that individual and the spouse or common-law partner; ( auteur ou disposant ) testamentary trust , in a taxation year, means a trust that arose on and as a consequence of the death of an individual (including a trust referred to in subsection 248(9.1)), other than (a) a trust created by a person other than the individual, (b) a trust created after November 12, 1981 if, before the end of the taxation year, property has been contributed to the trust otherwise than by an individual on or after the individual’s death and as a consequence thereof, (c) a trust created before November 13, 1981 if (i) after June 28, 1982 property has been contributed to the trust otherwise than by an individual on or after the individual’s death and as a consequence thereof, or (ii) before the end of the taxation year, the total fair market value of the property owned by the trust that was contributed to the trust otherwise than by an individual on or after the individual’s death and as a consequence thereof and the property owned by the trust that was substituted for such property exceeds the total fair market value of the property owned by the trust that was contributed by an individual on or after the individual’s death and as a consequence thereof and the property owned by the trust that was substituted for such property, and for the purposes of this subparagraph the fair market value of any property shall be determined as at the time it was acquired by the trust, and (d) a trust that, at any time after December 20, 2002 and before the end of the taxation year, incurs a debt or any other obligation owed to, or guaranteed by, a beneficiary or any other person or partnership (which beneficiary, person or partnership is referred to in this paragraph as the “specified party”) with whom any beneficiary of the trust does not deal at arm’s length, other than a debt or other obligation (i) incurred by the trust in satisfaction of the specified party’s right as a beneficiary under the trust (A) to enforce payment of an amount of the trust’s income or capital gains payable at or before that