Why Establish A Trust?
Trusts are a very important estate planning tool and depending on your circumstances, a trust can be either be a useful element or a necessary element of your estate plan. A trust is a relationship between two or more persons, whereby one person (the trustee) holds legal ownership and control of property for the benefit of someone else (the beneficiary).
A testamentary trust is created in your Will and comes into effect upon your death. Common uses for testamentary trusts are:
- Blended Families – You can set up a spousal trust to provide for your current spouse but preserve the assets for your children from a previous marriage
- Minor Beneficiaries – You can set up a trust to protect a minor beneficiary’s inheritance until they are old enough to manage their finances
- Disabled Beneficiaries – You can set up a special type of trust known as a Henson Trust to protect a beneficiary’s inheritance and preserve their entitlements under the Ontario Disability Support Program (ODSP)
An inter vivos trust is created and takes effect during the settlor’s lifetime. One of the more common uses for an inter vivos trust is an Alter Ego or Joint Partner Trust. If you are over the age of 65, you can transfer some or all of your assets into the trust and upon your death, the trustees can immediately access the assets (trust funds) and distribute to the beneficiaries without obtaining a probate certificate, thus avoiding probate fees.
Trust Creation Services
At Quinn Estate Law our Estate Planning services include the preparation of trust documents. These documents can identify specific details for who, what, when and how the beneficiary(s) will receive the assets from your estate. We can help you to determine whether a trust should be included as part of your estate plan.