Trusts - A Succession Planning Strategy
To schedule an appointment, contact our law firm at 403-400-4092 or Chris@NeufeldLegal.com
A trust is a legal structure designed to transfer property from the settlor to a trustee for purposes of putting to use that property for the benefit of its beneficiaries, being distributed in a pre-ordained manner to optimize the property's benefit to the recipients. As such, it has numerous estate planning and tax planning benefits, as it enables the settlor to effectively maximize how that property is to be utilized - minimizing its tax exposure, while optimizing one's control over its application (both in life and in the future).
There are numerous variants of trusts and purposes that they can and may serve, with the primary benefits of utilizing trusts as part of one's estate planning strategy including: (i) asset control and management, (ii) tax planning and efficiency, (iii) privacy and asset protection, and (iv) reduction in probate [more on benefits of trusts]. By working with a lawyer interested in discerning what you desire and see as appropriate for your family, together with helping you identify aspects that you may not have considered or deemed important, it possible to build the appropriate estate plan together.
Furthermore, given that a trust is a legal construct, it must be correctly developed and drafted, such that it is not only capable of realizing its intended objectives, but that it might also withstand legal scrutiny from external parties that might have differing or opposing interests, and are seeking to optimize their own objective pursuits (such as a commercial creditor, a disgruntled family member that believes they've been improperly disinherited, or the Canada Revenue Agency). For that reason, it is imperative that the legal complexities associated with drafting and enacting a valid trust instrument, are addressed by engaging knowledgeable legal counsel, including: (i) ensuring legal validity and compliance, (ii) tailoring the trust to your specific needs, (iii) properly funding the trust, and (iv) avoiding costly future errors [more on legal imperatives].
As such, when you are looking to create a trust that legally facilitates your objective goals, contact our law firm today to schedule a confidential consultation at 403-400-4092 or via email at Chris@NeufeldLegal.com.
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Henson Trusts. A Henson Trust is a trust (most frequently forming part of a parent's or grandparent's Will) that provides the trustees with the absolute discretion to distribute income and capital from the trust to the beneficiary as they see fit. The trustees have full control as to when, if and how much income or capital is to be paid to the beneficiary. Read more. |
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Inter Vivos Trusts. An inter vivos trust (also known as a living trust) is a legal arrangement created and funded during the lifetime of the settlor (the person creating the trust). The term "inter vivos" comes from the Latin "between the living" and as such is distinguishable from a testamentary trust, which is established on the death of the settlor. Read more. |
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Testamentary Trusts. A testamentary trust is a trust that is created by a person's will and comes into effect only upon their death. It is an alternative to distributing all assets directly to beneficiaries. Instead, assets are transferred to the trust, which is then managed by a trustee for the benefit of the designated beneficiaries. Read more. |
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Trust for Minors in a Will. A trust for minors in a will (a testamentary trust for minors) is a legal arrangement created within a will that takes effect upon the death of the person who made the will (the testator) that protects and manages a child's inheritance (or grandchild's inheritance) until they are old enough to manage it themselves (as determined by the testator). Read more. |
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Irrevocable Trusts. An irrevocable trust is a legal arrangement where the creator of the trust (known as the grantor or settlor) permanently transfers assets into the trust, giving up all ownership and control over those assets. Once established, an irrevocable trust generally cannot be changed, amended, or revoked without the consent of all beneficiaries, and sometimes a court order. Read more. |
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Asset Protection Trusts. An Asset Protection Trust is a legal arrangement designed to safeguard an individual's assets from potential future claims by creditors, lawsuits, or judgments. The core principle behind an asset protection trust is to legally separate ownership of assets from the individual who created the trust, making those assets less accessible to outside parties. Read more. |
IMPORTANT NOTE: This website is designed for general informational purposes. The site is not designed to answer specific questions about your individual situation or entitlement. Do not rely upon the information provided on this website as legal advice in respect of your individual situation nor use it as substitute for individual legal advice. If you want specific legal advice, you need to engage a lawyer under established legal engagement procedures that have been specifically agreed to by that lawyer.
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