A trust is created when a settlor transfers a specific item of property to a trustee to hold for the benefit of identified beneficiaries. It is best practice that a trust arrangement be recorded in writing, but it is possible to create a trust by conduct.
Each province in Canada has different rules about things like the duration of the trust and whether or how long a trust may "accumulate" income inside the trust before it must pay out that income to beneficiaries. For example, in British Columbia, a family trust may have a maximum life of 80 years. In other provinces, the maximum life is 21 years.
The Province of Quebec, as the only civil law jurisdiction in Canada, has rules that are very different than those of the other provinces when it comes to creating and maintaining family trusts. Advice from a Quebec lawyer should be obtained before setting up any family trust in Quebec.
In designing a family trust, you'll also want to consider these further distinctions:
We Accept
Home | About the Firm | Lawyer Profiles | Blog | Links | Legal | Privacy | Site Map | Contact Us | Meta
© 2005 - 2024, INC Business Lawyers. All rights reserved.