Draft legislative proposals support conversion of Health and Welfare Trusts

Department of Finance releases draft legislative proposals supporting the conversion of Health and Welfare Trusts

Special Notice –  June 21, 2019

On May 27, 2019, the Department of Finance (Finance) released draft legislative proposals to support the conversion of Health and Welfare Trusts (HWTs) established by Canadian plan sponsors into Employee Life and Health Trusts (ELHTs). The measures are intended to simplify the tax rules surrounding employee trusts to provide “greater certainty and consistency to taxpayers.”

This Special Notice analyzes the proposed draft legislation, and its impact for plan sponsors and their employees or members.