The trust indenture of a discretionary trust will be modified for it to become a non-discretionary trust, in order to avoid the application of the 21-year realization rule under s. 104(4)(b). Before indicating that it could not comment on whether such amendments would accomplish this end, and on their consequences, without examining the amendments and other facts in the context of a ruling application, and aftger noting that it
must examine the trust indenture, validly amended under Quebec civil law, to determine firstly, whether all the shares have been vested indefeasibly, and secondly, whether the beneficiaries' interest must end by reference to a period of time, and finally, if so, whether subparagraph (g) (v) of the Definition in subsection 108(1) applies
CRA stated (TaxInterpretations translation):
[T]here could be an indefeasible vesting of the interest in a trust if each beneficiary holds rights in the trust unconditionally and no subsequent event could annul those rights.