Each of four grandparents of a disabled grandchild establishes a trust for the grandchild individual under their will, with one of the trusts being intended to be a qualified disability trust (“QDT”). In this context, is it possible for a preferred beneficiary election to be made for each of the four testamentary trusts created for the benefit of the grandchild individual?
After confirming that only one of the trusts could be a QDT by virtue of the joint beneficiary making a joint election with one of the trusts in a given taxation year, CRA indicated that the introduction of the QDT provisions does not restrict the availability of the preferred beneficiary election.