Williams v. The Queen, 2005 DTC 1228, 2005 TCC 558 -- summary under Disposition

By services, 28 November, 2015

The taxpayer was found to continue to be the beneficial owner of shares that he transferred to a trust - of which he was one of the three trustees but of which he was found (under a poorly drafted trust agreement) to be the sole beneficiary until such time as, with his consent, any further beneficiary was added - notwithstanding that he had no control over the distribution of the trust property until the trust matured on its 21st anniversary. Woods, J. noted (at p. 1232) that "although the term 'beneficial ownership' is often used in the sense of full ownership except bare legal title", the ordinary meaning of the term is quite broad and includes a beneficiary's interest in trust property. This broad meaning was reflected in s. 248(3)(f).

Accordingly, there was no disposition of the shares.

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beneficial owner of shares held in a trust
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