For purposes of the 21-year deemed disposition rule, a trust does not include a trust "all interests in which … have vested indefeasibly". What is required for this to occur?
CRA indicated that although the rollover treatment addressed in IT-449R was a different subject than the vesting indefeasibly of the interests in a trust, the comments in the Bulletin nonetheless were equally applicable to the latter. CRA also referenced Boger Estate, which indicated that vesting occurs when there is no condition precedent to be fulfilled before the gift can take effect, and the persons that are entitled are ascertained and ready to take possession – there can be no prior interest in existence – and that a vested interest becomes indefeasible where there is no condition subsequent, or determinable limitation set out in the grant.
Per CRA's oral remarks, the 2006 article of Catherine Brown laid out a good checklist of the questions to ask in making the determination.