Specified investment flow-through (SIFT) trust wind-up event

The distribution of property before 2013 by a trust in favour of a taxpayer as consideration for the taxpayer's interest in the trust as a beneficiary, if the following conditions are met:

• The trust is:
  • a SIFT wind-up entity,
  • a trust whose sole beneficiary throughout the period beginning on July 14, 2008, and ending at the time of the distribution is another trust that is generally, throughout the same period, a SIFT wind-up entity, or
  • a trust whose sole beneficiary at the time of distribution is another trust if, throughout the period beginning on July 14, 2008, and ending at the time of the distribution, the sole beneficiary is both one of the above-mentioned trusts and a majority-interest beneficiary (see the definition under Losses on the disposition of property involving an affiliated person, but replace the “50%” by “25%” when you read it).
• The trust ceases to exist:
  • immediately after the distribution, or
  • immediately after the last of a series of distributions, in the case of a series of SIFT trust wind-up events.
• The property distributed was not acquired by the trust as a result of certain transactions to which the rollover rule applies. For example, an acquisition that occurred after February 2, 2009, by any person other than a SIFT wind-up entity in the case of a qualifying disposition, or of a qualifying exchange resulting from the reorganization of investment institutions.

Section 1