Does a will designating the testator’s children or descendants as beneficiaries of the testamentary trust satisfy the “named as a beneficiary” requirement even though they are not designated by name? CRA responded:
The term "named" in paragraph (b) of the definition of QDT in subsection 122(3) means a beneficiary who is identified by his or her name. This term refers to a beneficiary whose name is specifically stated in the instrument under which the trust was created.
Consequently, a beneficiary who is part of a class of persons described in the instrument under which the testamentary trust has been established, such as children or descendants of the deceased individual, as well as a beneficiary who is not yet born, would not be considered as a named beneficiary.