7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 7, 2016-0651751C6 F - Recovery Tax of Qualified Disability Trust -- summary under qualified disability trust

CRA confirmed that where the disabled beneficiary of a qualified disability trust dies during a year, this will result in the imposition of “recovery” tax, based on the top marginal rate, on any undistributed income from previous years still in the hands of the trust at the time of the beneficiary’s death.