Tax wiki
s. 60.011
PART I — Income Tax · DIVISION B — Computation of Income · SUBDIVISION E — Deductions in Computing Income
Meaning of
Not yet annotated · Text current to 2026-06-21 · section last amended 2013-06-26
Current text
For the purpose of subsection (2), a trust is at any particular time a lifetime benefit trust with respect to a taxpayer and the estate of a deceased individual if
immediately before the death of the deceased individual, the taxpayer
was both a spouse or common-law partner of the deceased individual and mentally infirm, or
was both a child or grandchild of the deceased individual and dependent on the deceased individual for support because of mental infirmity; and
the trust is, at the particular time, a personal trust under which
no person other than the taxpayer may receive or otherwise obtain the use of, during the taxpayer’s lifetime, any of the income or capital of the trust, and
the trustees
are empowered to pay amounts from the trust to the taxpayer, and
are required — in determining whether to pay, or not to pay, an amount to the taxpayer — to consider the needs of the taxpayer including, without limiting the generality of the foregoing, the comfort, care and maintenance of the taxpayer.
Meaning of
(2)Each of the following is a qualifying trust annuity with respect to a taxpayer:
an annuity that meets the following conditions:
it is acquired after 2005,
the annuitant under it is a trust that is, at the time the annuity is acquired, a lifetime benefit trust with respect to the taxpayer and the estate of a deceased individual,
it is for the life of the taxpayer (with or without a guaranteed period), or for a fixed term equal to 90 years minus the age in whole years of the taxpayer at the time it is acquired, and
if it is with a guaranteed period or for a fixed term, it requires that, in the event of the death of the taxpayer during the guaranteed period or fixed term, any amounts that would otherwise be payable after the death of the taxpayer be commuted into a single payment;
an annuity that meets the following conditions:
it is acquired after 1988,
the annuitant under it is a trust under which the taxpayer is the sole person beneficially interested (determined without regard to any right of a person to receive an amount from the trust only on or after the death of the taxpayer) in amounts payable under the annuity,
it is for a fixed term not exceeding 18 years minus the age in whole years of the taxpayer at the time it is acquired, and
if it is acquired after 2005, it requires that, in the event of the death of the taxpayer during the fixed term, any amounts that would otherwise be payable after the death of the taxpayer be commuted into a single payment; and
an annuity that meets the following conditions:
it is acquired
after 2000 and before 2005 at a time at which the taxpayer was mentally or physically infirm, or
in 2005 at a time at which the taxpayer was mentally infirm,
the annuitant under it is a trust under which the taxpayer is the sole person beneficially interested (determined without regard to any right of a person to receive an amount from the trust only on or after the death of the taxpayer) in amounts payable under the annuity, and
it is for the life of the taxpayer (with or without a guaranteed period), or for a fixed term equal to 90 years minus the age in whole years of the taxpayer at the time it is acquired.
Application of paragraph 60(l) to
(3)For the purpose of paragraph 60(l),
in determining if a qualifying trust annuity with respect to a taxpayer is an annuity described in subparagraph 60(l)(ii), clauses 60(l)(ii)(A) and (B) are to be read without regard to their requirement that the taxpayer be the annuitant under the annuity; and
if an amount paid to acquire a qualifying trust annuity with respect to a taxpayer would, if this Act were read without reference to this subsection, not be considered to have been paid by or on behalf of the taxpayer, the amount is deemed to have been paid on behalf of the taxpayer where
it is paid
by the estate of a deceased individual who was, immediately before death,
a spouse or common-law partner of the taxpayer, or
a parent or grandparent of the taxpayer on whom the taxpayer was dependent for support, or
by the trust that is the annuitant under the qualifying trust annuity, and
it would, if it had been paid by the taxpayer, be deductible under paragraph 60(l) in computing the taxpayer’s income for a taxation year and the taxpayer elects, in the taxpayer’s return of income under this Part for that taxation year, to have this paragraph apply to the amount.
Source: Justice Laws Website. Not an official version.
Historic text
This section has not been amended since it was enacted (2013, c. 34, s. 197), so there is no earlier version.
Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 60.011 links to the one before it.
Enacting and amending legislation
- 2013, c. 34, s. 197
Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.
Cross-references
Citation
Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 60.011.