Minister of Revenue (Ontario) v. McCreath, [1976] CTC 178, [1977] 1 SCR 2 -- summary under Property

By services, 28 November, 2015

The settlor of a trust delivered voting trust certificates to the trustee on terms that the income of the trust fund was to be paid during the settlor's lifetime to her or her issue and that on the death of the settlor, the trust fund was to be distributed among her issue as she might by will direct. With respect to an argument made on behalf of the estate of the settlor that was based on the proposition that the gift of the voting trust certificates was severable into income and capital interests, Dickson J. stated (at p. 191):

"Essentially the subject - matter of the gift was a block of shares... . Although the trust indenture provides that the income from the trust fund is to be handled in one manner and the corpus in another, that does not have the effect of constituting two properties... . The substance of the matter in my view is that there was one gift, the subject - matter being 99,986 common shares... ."

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