Canada: Trusts

A Lifetime Benefit Trust is one of the most powerful and underutilized estate planning tools available to Canadian families where a financially dependent beneficiary suffers from a mental infirmity.

Trusts are powerful tools for preserving wealth and facilitating intergenerational transfer, yet they remain widely misunderstood by families with business or investment assets. This article examines the fundamental nature of trusts, the critical distinction between legal and beneficial ownership, and how proper education and thoughtful design can help families avoid common pitfalls. Michael Goldberg explores why misconceptions about trusts can lead to confusion and conflict, and how to ensure these plannin

Understanding the various types of trusts available in Canada is essential for effective estate planning and asset management. From family trusts and alter ego trusts to qualified disability trusts and bare trusts, each structure offers distinct advantages for tax planning, probate avoidance, and protecting beneficiaries with special needs. This comprehensive overview examines the key requirements, uses, and tax implications of common trust structures to help you determine which option best suits your estat

For Canadian tax planners and trust beneficiaries, the “21-year rule” is a critical milestone.

A British Columbia Court of Appeal decision demonstrates that executors who pursue litigation primarily for their own benefit rather than the estate's interests may face personal liability for costs...

A Panama-based trust with a Quebec contributor faced federal surtax and denied provincial abatement despite paying Quebec tax, creating a situation where it was taxed as residing nowhere in Canada. The Tax Court dismissed the appeal, calling the outcome unfair but mechanically required by statute, illustrating how some tax disputes are predetermined by clear statutory language regardless of perceived unfairness.

Canadian income tax law does not prohibit Canadian residents from using offshore entities or structures. What it does prohibit—explicitly and deliberately—is the deferral of Canadian tax on passive or investment income through foreign intermediaries.

Planifier pour l'avenir ne se résume pas à la rédaction d'un testament. De nombreux Canadiens négligent ce qui pourrait arriver s'ils venaient à souffrir d'inaptitude cognitive ou fonctionnelle.

Not all guarantees are created equal. There is considerable confusion amongst mortgage lenders when structuring a mortgage loan highlighted by a recurring tendency to insist...