Munro & Crawford has provided multidisciplinary legal services to Vancouver’s residents since 1952. If you’d like to set up a living trust for your loved ones, we have the knowledge and experience to help.
Our specialist lawyers will help you choose the right trust for your circumstances, prepare your documentation, and ensure your wishes are carried out as you intend.
Along the way, we’ll offer personalized, friendly guidance to ensure your trust aligns with your needs. Take the first step by scheduling a chat with our personable team today.
What is a Living Trust or Inter Vivos Trust?
A living trust—also referred to as an inter vivos trust or a revocable trust—is a trust that you establish while you’re still alive.
Setting up a living trust gives you the opportunity to provide for your loved ones both while you’re alive and after your death. You might choose to release your assets after a child or grandchild hits a certain milestone, or distribute the assets after you pass away.
By putting your assets in a trust, you place them under the control of one or more nominated individuals, known as trustees. This trustee can be you as the settlor of the trust—meaning you can retain control of your assets over your lifetime—or any other individual you like.
You can also add secondary trustees to take control of the assets after your death. Once you pass away, these trustees will then manage the trust according to your instructions.
A living trust is revocable, meaning you can make changes to it while you’re alive. Like a safety deposit box, you can add possessions to the trust over time. You can also withdraw funds if you need to pay out a large sum.
Why Choose an Inter Vivos Trust? The Benefits of Living Trusts
Living trusts may seem a lot like Wills, but they have several points of difference. Here are just a handful of the reasons an inter vivos trust may be the right fit for you.
- Avoiding probate: With a living trust, your assets won’t be subject to probate, allowing your trustee to distribute your assets to beneficiaries quickly after your death. This could also save the beneficiaries money on legal expenses.
- Ensuring privacy for your loved ones: The probate process makes a family’s finances a public record. A living trust avoids this, keeping your private affairs private.
- Flexibility in management: A living trust is revocable while you’re alive, meaning you can add and withdraw assets as you require. You can also assign one or more trustees to the agreement.
- Continuous asset management & protection: Your inter vivos trust creates a secure fence around your assets, preserving your wealth until it can be allocated to your beneficiaries.
- Avoid will variation claims: Living trusts reduce the risk of will variation claims, preventing individuals from challenging the distribution of assets in court.
- Saving on taxes: When structured correctly, a living trust can help to minimize estate taxes, preserving more wealth for your loved ones.
The right choice between a revocable trust and other estate planning options will depend on your individual circumstances. When you reach out to Munro & Crawford, we’ll take the time to understand your needs and provide personalized guidance tailored to your situation.
How to Set Up a Living Trust
Setting up a living trust in British Columbia can be a complicated process. Choosing trustees, handling documentation and transferring assets can’t be taken lightly. The process requires a lot of careful consideration. Here are the crucial steps you’ll need to consider.
- Identify the assets you’d like to include in your trust. This could be real estate, investments, cash, or any other personal possessions.
- Choose your trustee. You can remain the primary trustee during your life and then appoint a successor to take control upon your death. Alternatively, you can appoint multiple trustees to access the fund simultaneously.
- Create your trust document. This will detail the terms of the trust, your beneficiaries, and the assets each will receive, as well as the responsibilities of your trustee.
- Establish the trust’s property. By changing the ownership of your asset to the trust’s name, you can secure these assets and preserve them for your beneficiaries.
- Fund the trust. Complete the final steps, such as moving money to the living trust or altering the name of a property owner.
If you’ve decided that a living trust is the right choice for you, it’s important to get the right help from an experienced trust lawyer. Munro & Crawford has decades of experience helping clients set up trust agreements that put them in control of their assets. Schedule a call today to learn more.
Get Expert Help from a Vancouver Living Trust Lawyer
At Munro & Crawford, we can guide you through the process of creating your living trust step-by-step. Our friendly Vancouver trust lawyers will take the time to understand your circumstances and make the process of building your trust simple and straightforward.
We can offer personalized support at every stage of the process. Whether you’d like us to help you select the appropriate trustees, create a transparent trust document, or support the transfer of assets, we’re here to handle the details and make sure everything aligns with your wishes. Reach out today or call us directly to learn more.
Contact Us Today for a Free Consultation
Schedule a free consultation with an expert advisor today if you’d like to ask any questions. Once we’ve discussed your circumstances, we’ll start the process, working alongside you to help you provide for your beneficiaries and secure your legacy.
Frequently Asked Questions About Living Trusts/Inter Vivos Trusts
What’s the difference between a will and a living trust?
The primary difference between a Will and a living trust is that a Will is only effective once the settlor passes away. A living trust can be added to and accessed throughout the settlor’s life, as well as after their death. In addition, a Will goes into probate once the settlor dies, meaning the family’s private financial records will become public. In contrast, a living trust requires no probate period, allowing the family’s financial matters to stay private.
Do I still need a Will if I make a living trust?
In most cases, yes. A Will is an essential backup plan for any assets you don’t transfer to your trust. If you were to acquire a property and passed away before you could move it to your trust, for instance, this property wouldn’t be included in your trust documentation. However, in your Will you can include more general statements, such as leaving all property to a specific beneficiary. Therefore, we recommend having both. Keep in mind that a living trust will take precedence over a Will.
How long does it take to set up a living trust?
It usually takes around two to four weeks to set up a trust, but this depends on its complexity and whether there are any additional hurdles to overcome. During our initial consultation, we’ll provide a more concrete estimate based on your unique circumstances.
Is the transfer of assets to a trust a taxable transaction?
Typically, yes. When the settlor of a trust transfers assets to a trust during their lifetime, this is usually considered taxable. The settlor will need to report that capital gain on their income tax return. There are some exceptions to this rule, though. When you contact us, we’ll discuss all of the considerations in depth.
