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:

Donald Hebb

A Canadian psychologist who proposed that learning and memory are functions of the connections between neurons, summarized by the phrase "cells that fire together, wire together."

Hippocampus

A major component of the brain in humans and other vertebrates, associated with memory formation, navigation, and spatial awareness.

Memory Consolidation

Memory Consolidation is the biological process by which newly acquired information is converted into long-term memory, making it stable and resistant to disruption.

Patient H.M.

A study subject in neuroscientific research known for his contribution to our understanding of memory after losing the ability to form new long-term memories following a surgical procedure.