What is a Trust?
A trust is a relationship where a person (the “trustee”) holds property for which it has control over (the “trust property”) for the benefit of others (the “beneficiaries”).
The person who initially transfers property to a trust and sets out its terms is referred to as the settlor. Typically, the settlor enters into an agreement with a trustee to hold the trust property for the benefit of the beneficiaries on certain terms. The agreement is often referred to as a trust agreement or trust deed.
What are the different types of Trusts?
There are two main types of trusts, one of the more common forms used for tax estate planning or asset protection purpose is an express inter vivos trust. An inter vivos trust refers to a trust, which is formed while a person is living. The second type of Trust is a testamentary trust, which is formed through the instrument of a Will.
In order for a trust to exist three conditions have to be met, these three conditions are often referred to as the three certainties:
- Certainty of intention – it must be clear that the Settlor intended that the trust property be held in trust
- Certainty of subject matter – the trust property must be clearly identified
- Certainty of objects – the beneficiaries or purpose of the trust must be clearly identified
A trust is not a separate legal entity such as a corporation, however certain taxing authorities such as those in Canada treat trusts as a separate entity for tax purposes, that is the trust itself is subject to taxation. This authority of Canada Revenue Agency to accord such treatment to trusts may be found in subsection 104(2) of the Income Tax Act (the “Act”).
What are the costs of drafting a Trust?
The cost of drafting a Trust is based on an hourly rate. By completing the Trust Intake Form you can save us time which translates into substantial savings for you. Our hourly rate is $295 per hour plus applicable taxes. We do not charge for such things as photocopying, faxing, secretarial services, and long distance telephone calls, which can save you hundreds of dollars more.
Why use M.J. O’Nions Lawyer & Mediator for drafting my Trust?
We have the expertise and experience to draft a Trust that meets your goals and objectives. We will do this in a cost effective manner while providing high quality professional service. We understand your needs and we are here to help. Just give us a call at 604-449-7779 to schedule an appointmant so we can be of assistance.