21 June 1990 Ruling 900753 F - Inter-vivos Trust as Beneficiary of Term Life Insurance Policy

By services, 18 January, 2022
Official title
Inter-vivos Trust as Beneficiary of Term Life Insurance Policy
Language
French
CRA tags
n/a
Document number
Citation name
900753
Severed letter type
Ruling
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
631242
Extra import data
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"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1990-06-21 08:00:00",
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Main text
24(1) File No. 900753
  D. Duff
  (613) 957-3498

Attention: 19(1)

June 21, 1990

Dear Sirs:

This is in reply to your letter of May 8, 1990 regarding the naming of an inter vivos trust as the beneficiary of a term life insurance policy.

It is our opinion that a contribution, equal to the cost of the premiums, is made when the trust is named the beneficiary. In your example, if the premiums are paid by the parent, the grandparent could become disqualified as the settlor.

The subsequent payment of the life insurance proceeds to the trust, on the death of the parent, would not be considered to be a contribution.

We trust our comments will be of assistance.

Yours truly,

for DirectorFinancial Industries DivisionRulings Directorate