What is a Trust Agreement?

A trust agreement, is an arrangement where assets are held with specific stipulations as to how and when a beneficiary or beneficiaries may access the assets. A trustee (or more than one trustee) is appointed to have legal ownership of assets within the trust. The trustee may or may not be a beneficiary.


Types of Trust Agreements

Inter Vivos Trust

An inter vivos trust is a trust created by a person for the beneficiary to receive while the creator of the trust is still living. This is often used to create a family trust in order to split an income between family members for tax savings.

Testamentary Trust

A testamentary trust is a trust created in a will to be accessed by the beneficiaries after the creator of the trust has deceased. This type of trust is often used to ensure that children receive an inheritance when they reach an appropriate age, to maintain a family’s ability to split income after one family member passes away, and various other reasons.


How Do I Set Up a Trust?

Our experienced lawyers can help you determine what type of trust is best for your situation and prepare your trust documents. Get in touch today and we will go over the different types of trusts and how best to move forward with creating a trust that best fits your needs.

Contact Us →


Can I save taxes if I set up a trust?
AYes, you will likely save taxes, but you will also have transactional costs that might be more than the savings. Each trust needs to be carefully reviewed to determine whether there is any real benefit to creating the trust.

Is the transfer of property to a trust a taxable transaction?
AIn many cases the Canada Revenue Agency treats the transfer of property to a trust as a ‘taxable disposition’, that will trigger capital gains and other taxes. There are some exceptions to these rules, however.

I am in receipt of disability benefits and I am about to receive an inheritance. I’m worried that my benefits will be cut off. Is a trust the answer?
AMany disability programs are asset-tested. That means that if you own more than a certain amount of assets your benefits will be cut off. To avoid this, in certain circumstances you are able to transfer assets to a trust to reduce your assets below the limit. When dealing with an inheritance, you typically have a short timeline – as little as 90 days – to create the trust and transfer assets to it in order to avoid losing your benefits. If this applies to you, please contact our office as soon as possible.