Your Friend Andrew Has Heard That You Are Studying Canadian

question 1

Essay

Your friend Andrew has heard that you are studying Canadian income taxation. He has heard people
discussing something called the '21-Year Rule' with regard to trusts. He has come to you with
questions regarding this rule, since his father recently established inter vivos trusts for both Andrew and his mother.
Required:
Briefly answer the following questions:
With regard to non-spousal trusts:
A)What is the purpose of the 21-Year Rule?
B)What event occurs on the 21st anniversary of a trust?
C)What types of properties are subject to the 21-Year Rule?
D)How can the consequences of the 21-Year Rule be avoided?
With regard to spousal trusts:
E)What is the exception to the 21-Year Rule for spousal trusts?

• A)What is the purpose of the 21-Year Rule?
• B)What event occurs on the 21st anniversary of a trust?
• C)What types of properties are subject to the 21-Year Rule?
• D)How can the consequences of the 21-Year Rule be avoided?
• With regard to spousal trusts:
• E)What is the exception to the 21-Year Rule for spousal trusts?

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The self-stimulation of the genitals to achieve sexual pleasure and arousal, which can be a part of normal sexual behavior.

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The developmental period when a child's body transitions into an adult body capable of sexual reproduction.

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A developmental stage between childhood and adulthood, marked by physical, psychological, and social changes.