Following Fundy Settlement, what weight should be assigned to the following criteria in determining the residence of a trust that holds portfolio investments?
1- The location of the brokerage account
2- The location of the portfolio manager
3- The fact that the management is or is not discretionary
4- The place where the securities are held
5- The location of trustees’ meetings and decision making
After noting that Fundy Settlement found “that it is justified to apply the central management and control test in determining the residence of a trust, just as it is applied in determining the residence of a corporation,” CRA stated:
[I]t does not seem appropriate to define and comment on any specific factors that may be relevant for the purpose of determining whether there in fact is an exercising of authority over significant decisions of a trust. This approach appears to us to be further justified by the fact that the determination of the place of residence of a trust, although generally made at one time, may require that factors and factual elements relating to an extended period be considered. … [T]he fact that a person advises a trustee should not in itself generally alter the location of central management and control of the trust at the trustee level.