Life Is Change: Using Powers of Amendment in a Non-Charitable Trust--Rules and Tax Implications

Joel Nitikman ()
Additional contact information
Joel Nitikman: Dentons Canada LLP, Vancouver

Canadian Tax Journal, 2017, vol. 65, issue 3, 559-632

Abstract: A trust is an equitable obligation, owed by the trustee to the beneficiary in respect of property given by either the trustee in her personal capacity or a third-party settlor to the trustee, to be held on specified terms. Generally speaking, the trust's terms may not be amended. There are exceptions: a trust may be amended under the rule in Saunders v. Vautier, a court's salvage, or emergency powers. In the case of a trust that contains an amending power, the conditions under which the power may be exercised and the rules governing its interpretation are subject to some debate. This article explores the law relating to the interpretation and application of amending powers and the potential income tax consequences of amending a trust. In general, no rules limit the scope of an amending power: its scope and the manner in which it is exercised are based purely on its terms, interpreted in the light of their text, their context, and the factual matrix. Moreover, the use of an amending power should not result in the trust or a beneficiary being viewed as having disposed of any property for tax purposes.

Keywords: Trust; power; amendment; fiduciary; beneficiary; trustee (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.ctf.ca/EN/Publications/CTJ_Contents/2017CTJ3.aspx (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ctf:journl:v:65:y:2017:i:3:p:559-632

Ordering information: This journal article can be ordered from
Canadian Tax Foundation, 145 Wellington Street West, Suite 1400, Toronto, Ontario, Canada M5J 1H8
https://www.ctf.ca/E ... ns_ListingBooks.aspx

Access Statistics for this article

Canadian Tax Journal is currently edited by Kim Brooks, Kevin Milligan, and Daniel Sandler

More articles in Canadian Tax Journal from Canadian Tax Foundation Canadian Tax Foundation, 145 Wellington Street West, Suite 1400, Toronto, Ontario, Canada M5J 1H8.
Bibliographic data for series maintained by Jim Lyons ().