How can the trustee designate or report an amount so that it is considered to be payable to a beneficiary?
After noting that CRA has not relied on the comments in Sachs in relation to the preferred beneficiary designation that the "authority to pay income to beneficiaries … includes the authority to declare or designate income as held for them to the exclusion of the continuance of the trustee's authority to deprive them of it” to establish a position with respect to the term "payable" and referring to its comments in IT-286R2, para. 8, CRA stated:
[A] written resolution signed by the trustees of a trust (or the minutes of a meeting of the trustees), whereby the trustees confer an irrevocable right on a beneficiary of the trust to receive a portion of the trust's income, is a means of establishing that the beneficiary has become entitled to enforce payment. Without such documentation, trustees and beneficiaries would have to provide other evidence that would satisfy the CRA that the amount was paid in the year to the beneficiary or that the beneficiary had the right to enforce its payment.