Words and Phrases - "named"

a
89
b
44
c
85
d
56
e
43
f
31
g
20
h
15
i
77
j
2
k
2
l
32
m
57
n
28
o
39
p
81
q
3
r
78
s
95
t
47
u
16
v
10
w
23
y
2

7 October 2016 APFF Financial Strategies and Instruments Roundtable Q. 6, 2016-0651741C6 F - Named beneficiary

Summary Under
Tax Topics - Income Tax Act - Section 122 - Subsection 122(3) - qualified disability trust - Paragraph (b)
beneficiary must be specifically named

Does a will designating the testator’s children or descendants as beneficiaries of the testamentary trust satisfy the “named as a beneficiary” requirement even though they are not designated by name? CRA responded:

The term "named" in paragraph (b) of the definition of QDT in subsection 122(3) means a beneficiary who is identified by his or her name. This term refers to a beneficiary whose name is specifically stated in the instrument under which the trust was created.

Consequently, a beneficiary who is part of a class of persons described in the instrument under which the testamentary trust has been established, such as children or descendants of the deceased individual, as well as a beneficiary who is not yet born, would not be considered as a named beneficiary.

Words and Phrases
named