CRA finds that subsequent bequests to a QDT will not disqualify it as such

We have uploaded the questions that were posed, and summaries of the preliminary oral responses given, at the 2 June 2026 STEP CRA Roundtable.

Q.1 related to the requirement in the definition of a qualified disability trust (QDT) that it be a testamentary trust that arose on and as a consequence of a particular individual's death.

Suppose that a QDT was established under the will of Parent A after her death, and when Parent B (the divorced ex-spouse of Parent A) subsequently dies, he bequeaths property to the same trust. CRA found that such a subsequent contribution would not disqualify the QDT.

First, the trust had already satisfied the requirement of having arisen as a consequence of a particular individual's death when it was formed pursuant to the will of Parent A. Second, given that the subsequent contribution occurred as a bequest, such contribution did not disqualify it as a testamentary trust, so that it continued to qualify as a QDT.

The same reasoning would apply if a subsequent bequest were made by a grandparent.

Neal Armstrong. Summary of 2 June 2026 STEP Roundtable, Q.1 under s. 122(3) - QDT.