Natalie Woodbury, “Testamentary Trusts: The New Rules” (2015) 63:1 Canadian Tax Journal 269-89 is a clear summary of the new rules relating to testamentary trusts and life-interest trusts. The author asks whether the new rules will lead to an increased use of inter vivos trusts, which, among other things, are private (do not require probate) and can be used to avoid probate taxes. She points out, however, that the testamentary trust will continue to be a valuable planning tool even without the benefit of graduated rates. Testamentary trusts have a myriad of non-tax uses and can be used as income sprinkling trusts just like inter vivos trusts.
