The will of the Quebec deceased bequeathed the usufruct of rental property (the "Immovable") to his spouse and the bare ownership to his adult child. The usufruct could be extinguished only upon the death of the spouse. Does the ability of the bare owner to dispose of his or her right to a third party cause the deemed trust arising under s. 248(3) (the “Trust”) to not meet the s. 70(6)(b)(ii) conditions? CRA stated:
[W]here the will provides that no person other than the deceased's spouse or common-law partner may, before death, receive any part of the income or capital of the Trust or otherwise obtain the use thereof… the fact that the will does not prevent the bare owner from disposing of his or her right should not, in and of itself, cause the condition in subparagraph 70(6)(b)(ii) to not be met.