Deemed trust

An institution such as a usufruct, a right of use or a substitution is deemed to be a trust. If the usufruct, right of use or substitution was established by will, the trust is considered to have been created by will. The property subject to the usufruct, right of use or substitution is thus considered to have been transferred to the trust on the death of the testator and as a consequence thereof.

Furthermore, an arrangement under which property is subject to rights and obligations is considered to be a trust if the arrangement is established by or pursuant to a written contract in which the parties express their intention to consider the arrangement as a trust within the meaning of the Taxation Act.

Beneficiary under a deemed trust

A person who has a right, whether immediate or future and whether absolute or contingent, to receive all or part of the income or the capital in respect of property referred to in the trust is considered to be the beneficiary under the trust in question.

For further information, refer to the Guide to Filing the Trust Income Tax Return (TP-646.G-V).