Although the tax benefits related to a testamentary trust are more limited than before, this option can still be very useful if you want to protect your family and your assets even after your death. By entrusting us with the role of trustee, we can support you in this process, which requires expertise, time and energy.
The testamentary trust in a nutshell
Created by a will, a testamentary trust:
- Takes effect upon the death of the testator
- Provides for the transfer of property to one or more beneficiaries, according to certain conditions pre-established by the testator
- Holds an autonomous and distinct patrimony from that of its beneficiaries
Useful in many situations
Anyone can create a trust in their will, but this solution is particularly appropriate in situations like these:
- The value of the property bequeathed to a minor child is greater than $40,000
- The testator’s spouse or one of his children has a handicap
- A beneficiary has special problems (addiction to gambling, alcohol or drugs)
- A beneficiary owns a business and is therefore exposed to financial risks
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The testator lives in a reconstituted family
Benefits for you and your descendants
Setting up a testamentary trust offers benefits that can make all the difference for you and your descendants.
- Protection of your estate assets: They remain sheltered from creditors in the event of the bankruptcy of one of the beneficiaries.
- Increased control: The testator maintains good control of the estate by establishing rules that could, among other things, prevent the squandering of the property by a beneficiary.
- Tax savings: Income splitting is still possible, in specific circumstances, which could reduce the tax bill of the heirs.
Why place your testamentary trust in our hands?
Working together, our notaries and tax specialists, backed by the experts from our partner Eterna Trust Inc., can help you create your testamentary trust. When the time comes, we will handle the administration of the trust from A to Z, according to your instructions. Among the tasks that we can perform:
- Gather the necessary information and documents to set up the trust.
- Answer and follow up requests from beneficiaries by correspondence, email or telephone.
- Document the execution instructions for any trust account withdrawal request and keep the trust ledger up to date.
- Mandate an accountant to prepare the annual tax returns of the trust.
- Plan a meeting with the Private Management manager to establish the investment policy and open the investment account of the trust.
- Prepare the monthly report of transactions in the trust bank account and send it to the beneficiaries.
- Submit the final tax returns when the trust is closed.
Your trust comes to life here
Speak to us about your trust plans and together we will take all the necessary steps to ensure that your heirs receive what you want them to after your passing.
Have questions or need information? Get in touch with one of our advisors.
