9.3.12

The relatively recent introduction of Employee Life and Health Trusts ("ELHT") resulted in significant uncertainty in the pension benefits industry in Canada.  After commentary from the pension benefits community, legislation from the Department of Finance and interpretive positions being released by the Canada Revenue Agency, the dust has mostly settled and many concerns have subsided.  Accordingly, it is a suitable time to revisit the basic features of an ELHT and a Health and Welfare Trust  ("HWT"), consider the most recent statements of the CRA and compare the tax and other advantages and disadvantages of using an ELHT versus a HWT.