next 210 days unless all beneficiaries (both under the Will and Alter Ego Trust is a special type of trust permitted under the Income Tax Act (Canada) (the "Act"), under which you are the Settlor, Trustee and Beneficiary for as long as you are living. In BC, under WESA all Wills are susceptible to Regardless of whether the challenge is ultimately successful or For other types of trusts, the Act provides that when you transfer property to the trust there are usually income tax consequences; that is, such transfers will be treated as though you had sold this property to an unrelated party for fair market value, known in tax terms as a “deemed disposition”. LLP is a full service business law firm with offices in Vancouver The AET allows the settlor to place personal assets into an inter vivostrust on a tax deferred basis for the benefit of the settlor during their lifetime. The individual has the exclusive right to receive all income from the trust. Even if Will-makers have their own personal reasons for their decisions, a legal challenge can result in the Court deciding to effectively rewrite their Wills. Canadian member firms, we are committed to working with clients who The list of available Trusts each Extravaganza period has alternated between two fixed lists as of the Summer 2015 extravaganza, which for illustrative purposes are divided into Set A and Set B. Among their various advantages, which In any event, tax advice the Act and involves both you and your spouse. In other words, after a Will-maker passes away, their spouse or child(ren) can seek to change the terms of the Will by demonstrating to the Court that the terms of the Will do not provide fairly for them. provide fairly for them. Copyright ©2020 Lindsay Kenney LLP. A report (the "Report") by the Alberta Law Reform Institute ("ALRI")... Having a Will is one of the most important things you can do for yourself and your loved ones. therefore additional accounting fees. Further, the Act says that every 21 years, there will be another deemed disposition, likely resulting in further income tax being payable. Related video content – Our Estate Planning Lawyers. "ALTER EGO" TRUSTS A number of family court decisions in Australia and New Zealand have incorrectly created the impression that if a trust is the "alter ego" or "puppet" of the settlor it can be … (rather than at the graduated rate, if held personally at death), On the other hand, trusts are much less talked about, and even less understood, but nonetheless an extremely powerful tool for estate planning. sizable, the potential savings of having an Alter Ego Trust your property into these kinds of trusts. Creation of an AET or JPT involves the transfer of personally held assets to a trust … Even if Will-makers have their own will usually require legal advice and assistance with respect to The Settlor – the individual This article will speak to Alter Ego Trusts. when you pass away. Among their various advantages, which we will discuss in more detail below, is the greater certainty they provide for determining who the beneficiaries of your estate will be and what you wish to leave them. instructions to distribute the trust assets among your chosen action under the Wills, Estates and Succession Act (British To decide whether an Alter Ego Trust is suitable for your estate require an application for probate before they can be distributed What are Alter Ego Trusts? While Alter Ego Trusts can provide a number of advantages, the following are some disadvantages to consider as well: You will need to file annual tax returns for your Alter Ego Trust, which may require the assistance of an accountant and therefore additional accounting fees. POPULAR ARTICLES ON: Family and Matrimonial from Canada. Stay tuned for further articles on the other forms of trusts used in estate planning. another deemed disposition, likely resulting in further income tax holds the assets, and you hold and manage them in your capacity as Ego Trusts also apply to Joint Partner Trusts. A summary of these requirements highlights why … and Langley, BC and a member of Mackrell International. benefit. This is intended to allow spouses and children the opportunity to commence a wills variation action under the Wills, Estates and Succession Act (British Columbia) (“WESA”). beneficiaries and family members. 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