What is a Will?

A will is a critical part of your estate plan that, among other things, allows you to distribute property as you wish upon your death, appoint an Executor to administer your estate and make funeral and burial arrangements, and appoint guardians for your children. In your will, you may create a testamentary trust.

A will is valid once it is written, signed, and witnessed by 2 people over the age of 19. However, the will does not take effect until the will-maker passes and can be revoked at any time until their passing.

What is a Trust?

A trust is a relationship where a person holds trust property (the “trustee”) for the benefit of others (the “beneficiaries”). There are three main parties to a trust, the settlor, the trustee, and the beneficiary. The settlor is the person who initially transfers property to a trust. The settlor enters into an agreement with a trustee, whereby the trustee agrees to hold the trust property for the benefit of the beneficiaries under agreed upon terms. For example, a parent (the settlor) gives money to their child (the trustee) to give to the school (the beneficiary) for school fees.

To establish a trust, three certainties must be met. First, there must be a certainty of intention, certainty of subject matter, and certainty of objects. Certainty of intention means it must be clear that the settlor intends for a property to be held in trust. Certainty of subject matter means that the trust property must be clearly identified. Finally, the certainty of objects means that the beneficiaries or purpose of the trust must be identified.

There are two main types of trusts: an inter vivos trust, which is a trust created during a person’s lifetime, or a testamentary trust, which is trust formed upon a person’s death through the instrument of a will.

Inter vivos trusts are useful for tax planning, estate planning, or other purposes. Testamentary trusts can be created to manage financial resources on behalf of dependent beneficiaries including minor children or beneficiaries with disabilities.

We at MJ O’Nions Lawyer & Mediator can assist you with your preparing your will or trust agreements. Give us a call at 604-449-7779 or contact us. We are here to help!