Trusts | By Lawyers
Skip to main content

Trusts

AB

This publication guides practitioners in Alberta through the establishment, amendment, and termination, revocation, or dissolution of a trust.

2 Matter Plans

Overview

The commentary covers the various types of trust structures, including qualified disability and charitable trusts, as well as the rights and obligations of beneficiaries and the role of individual and corporate trustees. It also provides detailed guidance on taxation requirements and addresses dispute resolution.

The Reference materials folder includes guidance on electronic signing and remote witnessing, and the Getting the matter underway folder contains essential compliance and client engagement documents. The extensive Retainer Instructions ensure that all necessary information is gathered from the client at the outset of the matter.

The Business structures and the comparative table guide provides a comparison of the pros and cons of different business structures.

Precedents in this publication include:

  • Discretionary trusts;
  • Income trusts;
  • Charitable trust;
  • Qualified disability trust;
  • Deeds of:
    • Assignment;
    • Variation;
    • Termination;
    • Removal and appointment of a trustee;
    • Nomination of a new protector.
Icon

2 Matter Plans Included

  • Item icon ALERTS - Nil
  • Item icon Full Commentary - Trusts (AB)
  • Folder icon Reference materials
    • Item icon AI Prompts
    • Item icon Electronic Signing and Remote Witnessing
    • Item icon Business Structures and the Comparative Table (AB)
    • Item icon Further information
  • Item icon Overview
    Trustees hold the technical ownership of property for the beneficial owners. Trusts separate the ownership of property into two components:

    This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

  • Folder icon A. Getting the matter underway
    • Item icon File cover sheet - Trusts
    • Item icon To do list - Trusts
    • Item icon First steps
    • Item icon Client details, verification, and source of funds
    • Item icon Retainer instructions - Trusts
    • Item icon Conflict of interest check
    • Item icon Initial letter to client enclosing retainer agreement
    • Item icon Retainer agreement - Alberta
    • Item icon Scope of work - Trusts
    • Item icon Time and costs estimates
    • Folder icon If required - Costs disclosure update and a non-engagement letter
      • Item icon Letter to client updating costs disclosure
      • Item icon Non-engagement letter
    • Folder icon General deeds, agreements, execution clauses, and statutory declarations
      • Item icon Deeds and Agreements
      • Folder icon Deeds
        • Item icon Confidentiality deed
        • Item icon Deed for general use
        • Item icon Deed of assignment of agreement
        • Item icon Deed of gift
        • Item icon Deed of guarantee
        • Item icon Deed of release
        • Item icon General deed of indemnity
        • Folder icon Library of standard clauses for deeds
          • Item icon Amendment clause
          • Item icon Confidentiality clause for defined information - All parties
          • Item icon Confidentiality clause for defined information - One party
          • Item icon Confidentiality clause for terms of agreement - All parties
          • Item icon Confidentiality clause for terms of agreement - One party
          • Item icon Costs clause
          • Item icon Counterparts clause
          • Item icon Dispute resolution clause
          • Item icon Events beyond control clause
          • Item icon Governing law and jurisdiction clause
          • Item icon Interpretation clause
          • Item icon No assignment clause
          • Item icon Notices clause
          • Item icon Severance clause
          • Item icon Waiver clause
          • Item icon Whole agreement clause
      • Folder icon Agreements
        • Item icon Agreement for general use
        • Item icon Heads of agreement
        • Item icon Non-disclosure agreement - Formal
        • Item icon Non-disclosure agreement - Informal
        • Folder icon Library of standard clauses for agreements
          • Item icon Amendment clause
          • Item icon Confidentiality clause for defined information - All parties
          • Item icon Confidentiality clause for defined information - One party
          • Item icon Confidentiality clause for terms of agreement - All parties
          • Item icon Confidentiality clause for terms of agreement - One party
          • Item icon Costs clause
          • Item icon Counterparts clause
          • Item icon Dispute resolution clause
          • Item icon Events beyond control clause
          • Item icon Governing law and jurisdiction clause
          • Item icon Interpretation clause
          • Item icon No assignment clause
          • Item icon Notices clause
          • Item icon Severance clause
          • Item icon Waiver clause
          • Item icon Whole agreement clause
      • Folder icon Execution clauses
        • Item icon Execution clauses - Agreements and contracts
        • Item icon Execution clauses - Deeds
      • Folder icon Statutory declaration
        • Item icon Statutory declaration
      • Item icon Standard annexure note for documents
  • Folder icon B. Trusts generally
    • Item icon Types of trusts
      Bare trust and non-bare trust A bare trust exists when the trustees hold the trust absolutely for the beneficiary and have no other duty or responsibility to the trust assets, except as the beneficiaries instruct. The beneficiary has the absolute rights to the trust income and capital.

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Parties to a trust
      Settlor The settlor is a person who establishes and transfers assets to the trust. The trust deed provides for the management of the trust, the powers and obligations of the trustee, and selects the beneficiaries.

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Liability of trustees
      A trustee owes a fiduciary duty to the beneficiaries. This is because the trust assets are not the trustee’s personal property but are held for the benefit of the beneficiaries. They must act reasonably, not arbitrarily, and consider the beneficiaries’ interests when exercising their powers. A ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Comparing discretionary and income trusts
  • Folder icon C. Discretionary trusts
    • Item icon Discretionary trusts
      The trustee of a discretionary trust decides when and how the trust income and property are distributed to beneficiaries. At the core of the discretionary trust relationship is the power of appointment, conferred by will or by inter vivos declaration. It gives a person the authority to deal with ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Establishing a discretionary trust
      The following actions and documents are required to establish a discretionary trust:

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Discretionary trust deed - Protector
    • Item icon Discretionary trust deed - No protector
    • Item icon Minutes of meeting of company accepting trusteeship
    • Item icon Settling the trust
      The trust is established when:

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Taxation – Discretionary trusts
      A trust is taxed in the same way as an individual. The trustee is responsible for managing the trust’s tax affairs, including lodging trust T3 tax returns, issuing T3 supplementary forms to the beneficiaries, and paying certain tax liabilities. The tax year for an inter vivos ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Amending a discretionary trust
      There is no distinction between a power of appointment and power of amendment. The term power of appointment is often used interchangeably to refer to the power to amend a trust instrument and appoint or consent to a change in trustee. In practice, the power of amendment commonly refers to the ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Deed amending discretionary trust
    • Item icon Deed of removal and appointment of trustee
    • Item icon Deed of nomination of new protector
    • Item icon Dispute resolution
      Discretionary trusts can become the subject of many disputes, particularly if there are complex financial arrangements and family dynamics underlying the trust. Disputes include:

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Vesting or termination of discretionary trusts
      The law against perpetuities is fundamental in trusts. Personal trust property must vest within 21 years of the death of the last surviving person associated with the trust. If the trust deed does not provide for trust property to vest within the 21 year period, it is void for contravening the ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Deed of termination of trust
  • Folder icon D. Income trusts
    • Item icon Income trusts
      An income trust is a fixed trust used in business and investment settings when there is a venture between unrelated parties. An income trust is distinguished from other types of trusts as the beneficiaries’ rights to the income and the trust’s capital are fixed, rather than subject to the trustee’s ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Establishing an income trust
      The following actions and documents are required to establish an income trust:

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Income trust deed
      The administration and organization of trusts is primarily contractual. The trust deed is the primary trust governance document. It establishes the trust and sets out its terms, including the rights, responsibilities, and powers of the trustee and the unitholders. The trust declaration is usually ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Income trust deed
    • Item icon Income trust deed - Providing for different unit classes
    • Item icon Application for the issue of units
    • Item icon Unit certificate
    • Folder icon If required - Other agreements
      • Item icon Unitholder agreement
      • Item icon Trust management agreement
      • Item icon Shareholder and unitholder agreement
    • Item icon Settling the trust
      The trust is established when:

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Taxation – Income trusts
      The trustee is responsible for managing the trust’s tax affairs, including registering the trust by obtaining a tax file number, lodging trust tax returns, and paying tax liabilities. An income trust’s net income is taxed in the hands of the beneficiaries at their marginal tax rate, based on their ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Amending an income trust
      Redemption and transfer of units An income trust deed ordinarily provides for unit redemption at the trustee’s election, on request by a single unitholder or by resolution of the unitholders. A trust that provides for a unitholder’s redemption rights is called an open end income trust.

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Transfer of units in a trust
    • Item icon Agreement for sale of units in an income trust
    • Item icon Application for redemption of units
    • Item icon Resolution to redeem and issue units
    • Item icon Subscription and securityholder agreement
    • Item icon Vesting or termination of income trusts
      The income trust deed will identify its vesting date when the trust assets are finally distributed. The deed will also enable the trust to be wound up or terminated if the trustee brings the vesting day forward or distributes the trust property. Often, the trust deed will allow the unitholders to ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Deed of termination of trust
  • Folder icon E. Charitable trusts
    • Item icon Charitable purpose trusts
      Charitable purpose trusts are express trusts established for charitable purposes, rather than for the benefit of identifiable beneficiaries. There is no direct individual beneficiary, the beneficiaries are the purpose for which it was created. Individuals may benefit indirectly from the trust. A ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Charitable trust deed
    • Item icon Registering for charitable or other qualified donee status – Government of Canada
  • Folder icon F. Qualified disability trusts
    • Item icon Henson trusts and qualified disability trusts
      Henson trusts Henson trusts are testamentary trusts created by common law. A testator establishes the trust for a dependent living with a disability to ensure the dependent does not lose the ability to receive government disability benefits.

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Qualified disability trust deed
    • Item icon Deed of variation for qualified disability trust
  • Folder icon G. Finalizing the matter
    • Item icon Finalizing the matter
      If original documents are kept in safe custody, they are best entered into a safe custody register and placed in a trackable envelope, never just kept on the file. Copies including the firm’s contact details on a cover sheet or in a letter enclosing the document need to be provided to the clients. ...

      This excerpt is a preview of the full publication. You can Subscribe Now and gain immediate access to the complete publication.

    • Item icon Letter to client finalizing the matter
    • Item icon Invoice recital - Trusts
    • Item icon Closing the file
    • Item icon File closing checklist
  • Item icon Comments and suggestions for By Lawyers

Our Authors

A team of legal professionals contribute to By Lawyers' publications, all helping to ensure that content is updated regularly to reflect changes in legislation, practice, and procedure.
Meet Our Authors
Authors