Question
d2 At the time of his death, Johan owned a home and a cottage. In his will, he transferred all of the property to his
d2 At the time of his death, Johan owned a home and a cottage. In his will, he transferred all of the property to his wife, Gretchen, in the form of a spousal trust. The will specified that Gretchen was allowed to use the cottage and receive any rental income that the cottage generated. Johan's will also specified that his business partner, Jim, was to be allowed to use the cottage for two weeks in the summer and two weeks in the winter. According to the Income Tax Act, the spousal trust is:
a) diluted.
b) tainted.
c) untainted.
d) testamentarily operable.
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