26 November 2020 STEP Roundtable Q. 11, 2020-0839891C6 - Subsection 104(19) -- summary under Paragraph 249(1)(c)

If a beneficiary receives an amount that is designated as a taxable dividend under s. 104(19) by the payor trust (which designation CRA considers to be effective on December 31 of the trust's taxation year), but that individual dies during the year, that dividend nonetheless is included in the individual’s terminal return (even though the death occurred before the December 31 effective date of the dividend designation) given that the taxation year of an individual (even of a deceased individual) is the calendar year and there “is no provision in the Act that shortens a taxpayer’s taxation year in his or her year of death so as to cause it to end as at the taxpayer’s date of death.” Thus, the requirement in s. 104(13) - that the dividend be income from a trust whose taxation year did not end before that of the individual - is satisfied.