9 May 2007 External T.I. 2006-0189931E5 F - Renonciation à une fiducie par un conjoint -- summary under Paragraph 69(1)(b)

What are the tax consequences of the renunciation by the beneficiary of a testamentary spousal trust of all entitlements under the trust (other than income that has accrued to date) without consideration and without having indicated who was entitled to benefit from the renunciation? CRA indicated that the beneficiary would generally not be considered to have received proceeds of disposition for the beneficiary’s income and capital interest and, since the renunciation was not made to a person, s. 69(1) would not apply.