The first deemed disposition day of a pre-1972 non-spousal testamentary trust was deferred until January 1, 1999 through an exempt beneficiary election under s. 104(5.3). On January 1, 2000, one of its beneficiaries died and its assets were transferred to a successor ("transferee") trust in a transfer to which s. 104(5.8) applied. What is the "disposition day" of the transferee trust under s. 104(5.8)?
CRA found that the day determined under s. 104(5.8)(a)(i)(A) is January 1, 2020, and the day determined under s. 104(5.8)(a)(i)(B) is January 1, 2021, so that the transferee trust's first deemed disposition day is January 1, 2020. Under s. 104(5.8)(a)(ii), the transferee trust would not also have a deemed disposition on January 1, 2021 for purposes of subsections 104(4) to (5.2).