The Will of the resident deceased establishes a trust for the benefit of his U.S.- resident child and her non-resident issue. The Will is administered in Canada by the resident execuor. However the trustee of the child's trust is resident in the US and the trust's central management and control is in the US. Is the deceased's estate considered to be a contributor to the child's trust or is the only contributor the deceased himself? CRA stated:
…Pursuant to paragraph 94(2)(g), when the child's trust acquires its interest in the deceased's estate, the estate will be deemed to have transferred the interest to the child's trust. Accordingly, the deceased's estate will be considered to be a contributor to the child's trust.
Furthermore, pursuant to paragraph 94(2)(n), "a contribution made at any time by a particular trust to another trust is deemed to have been made at that time jointly by the particular trust and by each person or partnership that is at that time a contributor to the particular trust...". Therefore, in the given instance, the deceased is also considered to be a contributor to the child's trust.
