Trust Planning
Lawyer in Toronto
Creating inter vivos trusts, testamentary trusts, and Henson trusts to protect your assets and your beneficiaries across Ontario.
Book My 15-Minute Assessment →Creating inter vivos trusts, testamentary trusts, and Henson trusts to protect your assets and your beneficiaries across Ontario.
Book My 15-Minute Assessment →Trusts offer powerful tools for asset protection, tax planning, and providing for vulnerable beneficiaries. We structure them to achieve your specific goals.
An inter vivos trust is created during your lifetime and takes effect immediately. A testamentary trust is created through your will and comes into existence upon your death. They have different tax treatment under the Income Tax Act (Canada) and serve different planning objectives. Both are governed by the Ontario Trustee Act and common law trust principles.
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A trust is a legal arrangement in which one person (the settlor) transfers property to another person (the trustee) to hold and manage for the benefit of specified beneficiaries. Trusts are governed in Ontario by the Trustee Act, common law principles, and federal tax rules under the Income Tax Act (Canada). Whether established during your lifetime (an inter vivos trust) or through your will (a testamentary trust), trusts provide a flexible and powerful mechanism for asset protection, tax planning, and the controlled distribution of wealth.
At Lexaltico LLP, our trust planning lawyers at 55 University Avenue, Toronto work with individuals and families to design trust structures that meet their specific objectives. Common reasons for establishing a trust include protecting assets for minor children, providing for a beneficiary with a disability without affecting their government benefits, facilitating a business succession, minimizing estate administration tax, and controlling the timing and conditions of asset distribution.
Trust planning is an integral part of a comprehensive estate plan. Our Will + 2 POAs package from $995 can incorporate testamentary trust provisions for families with minor children or other planning needs. For more complex trust structures, including inter vivos trusts and family trusts, we provide detailed advice on the legal and tax implications and prepare all necessary documentation. Book My 15-Minute Assessment to explore how trusts can enhance your estate plan.
An inter vivos trust (living trust) is created during your lifetime and can take effect immediately. These trusts are commonly used for estate freezes in business succession planning, income splitting among family members (subject to the tax on split income rules), protecting assets from creditors, and managing property for individuals who may not be able to manage it themselves. Under the Income Tax Act, inter vivos trusts are generally taxed at the highest marginal rate, which requires careful tax planning to ensure the trust structure achieves its intended objectives.
A testamentary trust is created through your will and comes into existence upon your death. These trusts are particularly valuable for providing for minor children, staggering the distribution of assets to beneficiaries over time (e.g., distributing one-third of the trust at age 25, one-third at 30, and the remainder at 35), and protecting assets from a beneficiary's creditors or from the division of property in a family law context. Our wills frequently incorporate testamentary trust provisions to give estate trustees the flexibility and direction they need.
A Henson trust (also called an absolute discretionary trust) is a specialized testamentary trust designed for beneficiaries who receive Ontario Disability Support Program (ODSP) benefits or other needs-based government assistance. Named after the Ontario decision in Ontario (Director of Income Maintenance, Ministry of Community and Social Services) v. Henson, this trust gives the trustee absolute discretion over distributions, ensuring the trust assets are not treated as the beneficiary's own resources for government benefit purposes. Our lawyers have extensive experience drafting Henson trusts that comply with current ODSP regulations and protect the beneficiary's entitlements.
The selection of a trustee is one of the most important decisions in trust planning. Under s. 27 of the Trustee Act, a trustee has a duty to exercise the care, skill, diligence, and judgment that a person of prudence would exercise in managing their own affairs. Trustees can be individuals (such as a family member or trusted friend) or professional trustees (such as a trust company). We help you evaluate the advantages and disadvantages of each option and draft trust provisions that provide clear guidance to the trustee on their duties, powers, and investment authority.
Trust administration involves ongoing obligations, including maintaining proper records, filing annual T3 trust tax returns, making distributions in accordance with the trust terms, and investing trust property prudently in compliance with the Trustee Act and the trust document. We advise trustees on their obligations and assist with the preparation of trust accounts. For testamentary trusts created through your will, we ensure the trust provisions are clear and workable so the trustee can administer the trust without unnecessary complexity or court involvement.
Whether you are looking to establish an inter vivos trust during your lifetime, include testamentary trust provisions in your will, or create a Henson trust for a loved one with a disability, our team at Lexaltico LLP provides the legal experience you need. Our Simple Will from $500 provides a starting point, and our more comprehensive packages incorporate trust provisions tailored to your family's needs. Get Started Today by contacting our office at 55 University Avenue, Toronto, for a consultation with an experienced trust planning lawyer.
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Estate freezes and family trusts covers the structure most often used to cap the value in an owner hands while letting the business keep growing.
Our lawyers offer a 15-minute initial assessment for most matters. Call, email, or book online. Do not sign anything before speaking with us.
55 University Ave, Suite 1100
Toronto, ON M5J 2H7
2 Sheppard Ave East, Suite 303, Toronto, ON M2N 5Y7
Monday to Friday: 9:00 AM to 6:00 PM
Evenings & weekends by appointment
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