For a living trust, the fellow may retain some control over the trust, for example. B by appointment as protector as part of the fiduciary instrument. In practice, the life of trusts is generally largely tax-driven. In the event of a living trust failure, the property is generally held for grantor/Settlor on the resulting trusts, which has had disastrous tax consequences in some remarkable cases. [Citation required] The second case, Blum v. the Queen, was decided in September 1998 by the Canadian Tax Court if the profits and income of shares acquired by a grandfather with confidence for his grandchildren were to be charged to him. Mr. Blum sold a few units in 1987 and 1988. Although the shares were issued in his name «in confidence» for his grandchildren, the rating agency included Mr.
Blum`s capital gains and shares for the two years in question. Mr. Blum appealed to the Canadian Tax Tribunal and argued that, although the funds do not interfere with the trust`s official documents, the funds were not used personally by him, but held the shares and proceeds of the sale for the fiduciary grandchildren. The Court held that this was a definitively established trust and that the benefits and interest were therefore not attributable to Mr. Blum. The party that establishes a position of trust is called Grantor. In the trust agreement, grantor appoints a person known as an agent to take possession and manage the trust`s assets. The agent can be a person, a small business or a company. The party intended to receive the trust`s income or other assets is designated as a beneficiary. Why would anyone choose such trust? Irrevocable trusts offer many tax and wealth protection benefits that do not have revocable trusts, although both types of trusts avoid an estate. A type of receiver account is an estate account created by the administrator of the estate to hold estate funds during the succession process. An estate has an executor, if the deceased has left a will; In the absence of a will, the court appoints a director.
The executor or administrator acts as an agent of the funds in the account and is responsible for the use of the funds. As soon as the estate`s taxes and other debts are settled, the estate is closed and the executor distributes the funds to the estate beneficiaries. Only the agent can close the trust account. Check the bank`s account closing requirements to see what documents you need to bring, usually personal identification and all the documents you received when you first set up the trust account. While the bank should also have the trust agreement in the file, it is a good idea to bring a copy of the agreement with them. An owner who trusts the property converts part of his or her set of rights to the trustee, which separates legal ownership and control of the property from his property and benefits. This can be done for tax reasons or for the control of the property and its benefits if the settlor is absent, disabled or deceased.