Your Friend Andrew Has Heard That You Are Studying Canadian

question 6

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 Andrew and his mother.
Required:
Briefly answer the following questions.(Base your answers to Questions 1 - 4 on non-spousal trusts.)
1)What is the purpose of the "21 Year Rule"?
2)What event occurs on the 21^st anniversary of a trust?
3)What types of properties are subject to the 21 Year Rule?
4)How can the consequences of the 21 Year Rule be avoided?
5)What is the exception to the 21 Year Rule for spousal trusts?

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Definitions:

Entrance Requirements

Criteria or qualifications that must be met or possessed by an individual to be eligible for admission into an institution, program, or activity.

Colleges

Educational institutions that offer undergraduate degrees and, in some cases, master's degrees, focusing on a broad or focused set of disciplines.

Pentagons

A geometrical figure with five sides and five angles.

Sides

The distinct, straight or curved boundaries that outline the shape of a geometric figure, object, or area.