1 Taxation of Trusts

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Lyrics

[Verse 1]
When granddad sets aside his wealth today
Inter vivos trusts begin their play
But when he's gone and wills unfold their plans
Testamentary trusts take command
Special purpose trusts serve narrow goals
Charity, pension, structured roles

[Chorus]
Twenty-one years the clock will chime
Deemed disposition every time
Seventy-four through seventy-five
Keep attribution rules alive
Remember this taxation dance
Trusts don't escape the taxman's glance

[Verse 2]
Attribution bites when income flows
To spouse or minor that you chose
Section seventy-four point one declares
The settlor's burden that he bears
But seventy-five point two runs deeper still
Reversionary trusts bend to its will

[Chorus]
Twenty-one years the clock will chime
Deemed disposition every time
Seventy-four through seventy-five
Keep attribution rules alive
Remember this taxation dance
Trusts don't escape the taxman's glance

[Bridge]
Graduated Rate Estates get their break
Thirty-six months for heaven's sake
Qualified Disability Trust stands apart
Progressive rates warm the heart
But watch for reversion back to you
Section seventy-five point two

[Verse 3]
When assets might return one day
Attribution comes into play
The beneficial owner bears the cost
Even when control seems lost
But death creates a special case
Where different rules take their place

[Chorus]
Twenty-one years the clock will chime
Deemed disposition every time
Seventy-four through seventy-five
Keep attribution rules alive
Remember this taxation dance
Trusts don't escape the taxman's glance

[Outro]
Inter vivos, testamentary too
Special purpose trusts in review
Twenty-one year rule stands firm and true
Canadian trust tax law for you

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