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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Definitions:

Control Group

A group in an experiment that does not receive the treatment or intervention being tested, allowing for comparison with the experimental group.

Open-ended Interviews

A qualitative research technique involving unstructured conversations that allow for an exploration of the interviewee's thoughts and feelings without predefined answers.

Conversational Style

The characteristic way in which an individual communicates verbally in social interactions, often reflecting personal and cultural identity.

Follow-up Questions

Questions asked after the initial query or investigation to gain more information or clarify previous responses.