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 t trusts. He has come to you with questions regarding this rule, since his father
recently established inter vivos trusts for both Andrew and his mother.
Required:
Briefly answer the following questions:
With regard to non-spousal trusts:
1) What is the purpose of the "21 Year Rule"?
2) What event occurs on the 21st 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?
With regard to spousal trusts:
5) What is the exception to the 21 Year Rule for spousal trusts?

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The Answer of 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 t trusts. He has come to you with questions regarding this rule, since his father
recently established inter vivos trusts for both Andrew and his mother.
Required:
Briefly answer the following questions:
With regard to non-spousal trusts:
1) What is the purpose of the "21 Year Rule"?
2) What event occurs on the 21st 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?
With regard to spousal trusts:
5) What is the exception to the 21 Year Rule for spousal trusts?

Your Friend Andrew Has Heard That You Are Studying Canadian