The Benefits Of Setting Up a Trust

Dec 10, 2018 | Jason David Smith


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There are many benefits to setting up a trust, as it ensures your assets are distributed to your loved ones—or causes you care about—according to your specific wishes, in a confidential, tax-effective way.

There are many benefits to setting up a trust, as it ensures your assets are distributed to your loved ones—or causes you care about—according to your specific wishes, in a confidential, tax-effective way.

Trusts are often used to provide for yourself, your spouse, children or other minor family members.

They are usable to protect the future of family members with a physical or mental disability.

Unlike a will, Trust succession is not public. Thus you can maintain confidentiality when it comes to your financial affairs. You can donate to a charitable cause anonymously or ensure other loved ones are supported outside of the will.

Naturally, survivors will write their own wills, and sometimes your original intentions may be forgotten. But trusts can be irrevocable. This may help protect family members if there are subsequent marriages.

Without going into detail you can also achieve certain tax advantages.

One of the most important decisions you’ll make when setting up a trust is determining who will act as your trustee—the individual or trust company who will carry out your wishes and protect your financial legacy.

For more information on this go to Jason’s Blog at www.jasondavidsmith.ca

 

An essential decision is who your trustee should be. Look for someone who has expert knowledge of trusts and provincial trust laws. Who can act reliably to administer and manage the trust on an ongoing basis. Someone with integrity, good judgment, and the ability to develop empathetic relationships with beneficiaries. Someone who understands the complex requirements of investing trust assets and who makes time for beneficiaries whenever needed and for many years to come. Typically people choose a lawyer or Professional Trust Services (which we can help with) as administering a trust can often create family conflict or renew existing family discord. An unbiased third party can often be an invaluable resource in managing those tensions.

 

For more information on this contact Jason Smith via email Jason.smith@rbc.com