Respecting the treatment of a usufruct created in a foreign jurisdiction such as under the French Civil Code, CRA stated (TaxInterpretations translation):
Where a usufruct is not governed by the laws of Quebec, subsection 248(3) is not applicable. Consequently, in the situation of a usufruct governed by the French Civil Code, we are of the view that the creation of such usufruct would not generally be treated as the creation of a trust under Canadian tax law.
In this context, it would be necessary to determine if the creation of the usufruct entailed a disposition for purposes of the Act. This determination should be made in the light of the treatment under the laws of the foreign jurisdiction of the division of the ownership rights.