Would a testamentary trust qualify as a spousal trust if the deceased taxpayer’s will deferred the final distribution date for the spousal trust up to three years after the death of the surviving spouse? After referencing the requirements of s. 70(6)(b), CRA responded:
Generally, a provision in the deceased taxpayer’s will that provides for the deferral of the final distribution date for up to three years after the death of the surviving spouse, thus continuing the existence of the trust, should not in and of itself preclude the trust from qualifying as a spousal trust pursuant to subsection 70(6).