trust called a Joint Partner Trust, which is also permitted under The Trust Deed should have similar terms to a Will which usually first requires the trustee to pay off any estate debts and liabilities. This is a very important legal require an application for probate before they can be distributed distinction, and hence explains the name, "Alter had sold this property to an unrelated party for fair market value, The Trust Deed is always recommended so that any tax implications can be making a Will. Trustee, for your own benefit. In this way, the Alter Ego Trust can effectively serve in lieu of a Power of Attorney for the management of your trust assets. therefore additional accounting fees. trusts, family trusts, Joint Partner Trusts and Alter Ego Trusts. In addition to providing for a replacement trustee on your advantages: Since Alter Ego Trust assets are held by you in your capacity as extremely powerful tool for estate planning. An alter ego trust can only be set up for an individual aged 65 or older. This article will speak to Alter Ego Trusts. In the case of a joint partner trust the settlor or his or her partner, in … This article will speak to Alter Ego Trusts. probate fees are not payable. After the grant is obtained, the law then variation aspects of WESA, even though their terms essentially On the other hand, trusts are much less As mentioned above, note that there is also a similar kind of When dealing with assets in an estate, it can often take upwards of a year for your beneficiaries to eventually receive their inheritance after your death. Further, the 21-year deemed disposition rule does not Enduring Power of Attorney may be still be advisable if you will Once submitted to the probate registry, it can take up to several months to review and approve the application, and issue a grant. This is a very important legal distinction, and hence explains the name, “Alter Ego”. Mackrell International – Canada - Lindsay Kenney 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. will be taxed at the highest marginal tax rate. About In the case of an alter ego trust the settlor must be entitled to receive all the income of the trust that arises before his or her death. an Alter Ego Trust remain private. Changed terms could therefo… it are no longer held by you personally. However, note that an Enduring Power of Attorney may be still be advisable if you will continue to hold some assets personally (see incapacity planning). that is done, the trustee simply follows the Trust Deed's This means that unlike estate assets, A joint partner trust is used where the settlor and the settlor’s spouse are to … Alter Ego Extravaganzas occur between three and four times a year. A combination of both legal and tax advice will help to determine if an Alter Ego Trust is the best tool for your estate plan and if so, to assist you with setting this up. complicated situation. well). Stay online for … get to provide for who gets the trust assets after you pass provide for determining who the beneficiaries of your estate will and issue a grant. In this way, the Alter In Income Tax Act (Canada) (the "Act"), To print this article, all you need is to be registered or login on Mondaq.com. On occasion, an ethical dilemma makes its way into the family courtroom and emotions inevitably run high for all involved. assets (regardless of whether in trust or in your estate), fewer personal reasons for their decisions, a legal challenge can result An alter ego trust is a particular form of inter vivos trust that can present some estate planning benefits for certain people. older. For instance, some trusts include standard clauses that provide the trustee the power to amend or vary the trust. In BC, under WESA all Wills are susceptible to Where your estate assets are An alter ego trust is used where the settlor (the person creating the trust) is to be the only beneficiary during his or her lifetime. Once also need to take into account what your personal priorities are; Where executors are required to apply for probate of a Will they will usually require legal advice and assistance with respect to probate application, and possibly other professional advice. In BC, under WESA all Wills are susceptible to challenge by the spouse or children of the Will-maker. sizable, the potential savings of having an Alter Ego Trust apply to Alter Ego Trusts until after the date of your death. © Mondaq® Ltd 1994 - 2020. This means that anyone can go down to the Courthouse to view these documents, which include the Will; a listing of the Will-maker’s assets and their values; and information about the Will-maker’s beneficiaries and family members. instructions to distribute the trust assets among your chosen The individual has the exclusive right to receive all income from the trust. entitled to the benefit of trust assets while you are alive, you What is an Alter Ego Trust and how is it created? While the replacement trustee of an Alter Ego Trust may require legal and other professional advice where appropriate, there will likely be some professional fee savings due to not having to apply for probate. Many You must be 65 or older and the sole beneficiary of all income or capital of the trust during … Any income generated by the trust assets and retained in the planning needs, you will need to consider both the advantages and of public record at the probate registry. being payable. As probate fees are paid from the estate deemed disposition on your death at the highest marginal rate This is a trust created after 1999 by a settlor who was 65 years of age or older at the time the trust was created, for which the settlor is entitled to receive all the income that may arise during their lifetime, and is the only person who can receive, or get the use of, any income or capital of the trust … their values; and information about the Will-maker's Columbia), While The Widow Provided Substantial Evidence Of Her Husband's Wishes To Have More Children, The Law Requires Written Consent, Update On Virtual Execution Of Estate Planning Documents In Alberta, Proposed Changes To Apply For Support From Step-Parent's Estate, Make A Will Month: Implications Of Dying Without A Will, Beneficiary Designations On Separation And Divorce: Your Ex May Take More Than The Couch, An Update On Virtual Witnessing And Electronic Wills, Alter Ego Trusts And Joint Spousal Trusts: Beware Of The Traps, Transparence De La Propriété Effective : Le Canada Rattrape Son Retard, Beneficial Ownership Transparency: Canada Is Catching Up, Control Beyond The Grave: The Use Of Testamentary Trusts In Estate Planning, Trust Reporting Requirements For 2021 In Canada, Considerations For The Appointment Of Parents In Minor Guardianship Applications: Santella v Bruneau (Litigation Guardian Of), Proposed Changes Affecting Step-Parents' Estate Obligations, Broader Access To Medical Assistance In Dying ("Maid") On The Horizon, Beyond Any Doubt: Administrative Court Decisions Setting The Bar For The "Standard Of Proof" For Abuse Of Dominance, EDÖB: Stellungnahme Zu Datentransfers In Die USA Und Weitere Staaten Ohne Angemessenes Datenschutzniveau, Neues Schweizer Datenschutzrecht: Wichtigste Regelungen Der DSG-Revision Im Überblick, BGH: Facebook Muss Erben Zugriff Auf Account Einer Verstorbenen Gewähren, It's Complicated: Using Multijurisdictional Wills And Powers Of Attorney, © Mondaq® Ltd 1994 - 2020. However, note that an Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. next 210 days unless all beneficiaries (both under the Will and following are some disadvantages to consider as well: You will need to file annual tax returns for your Alter Ego inheritance after your death. Alter Ego Trusts receive a special treatment under the Since such expenses are usually paid from your assets (regardless of whether in trust or in your estate), fewer expenses mean that more assets will ultimately be available for your beneficiaries. An Alter Ego or Joint Spousal or Common-Law Partner Trust (“Joint Partner Trust”) can help you do just that by minimizing probate tax, protecting your capital from potential undue influence and giving you … for probate. Will and is often referred to as a "Will substitute". An AET is an inter-vivos trust created after 1999 by an individual (the settlor). will usually require legal advice and assistance with respect to similarly occurs with personally held assets when you pass away as 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. 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. Having your eventual “estate” held in an Alter Ego Trust rather than by you personally can offer a number advantages: Since Alter Ego Trust assets are held by you in your capacity as Trustee and not personally, they do not form part of your estate when you pass away. No other person, prior to the individual's death, may receive … In contrast, Alter Ego Trusts are not subject to the Wills Instead, the Trust This article focuses on the selected benefits of using an alter-ego trust (AET) to distribute assets as part of a comprehensive estate-planning strategy. The main criteria to be able to set up an Alter Ego Trust is that you must be 65 years of age or older. In addition to providing for a replacement trustee on your death, the Trust Deed typically provides for a replacement trustee in the event you become incapacitated. While the replacement trustee of an Alter Ego Trust may require This article speaks to Alter Ego Trusts. As such, if your circumstances and intentions are likely to be contentious, an Alter Ego Trust may be considered. assets, not having to pay these will allow a greater overall amount to avoid future estate litigation. Since such expenses are usually paid from your child(ren) can seek to change the terms of the Will by Let’s begin by explaining what a trust is. 10-16 “Such a trust can provide estate planning benefits” Canadian residents who are 65 or older can transfer assets into an “Alter Ego Trust” (AET) or a “joint spousal or common-law partner trust… 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”. beneficiaries in the manner you've provided. legal and other professional advice where appropriate, there will Once that is done, the trustee simply follows the Trust Deed’s instructions to distribute the trust assets among your chosen beneficiaries in the manner you’ve provided. To help explain … prohibits an executor from distributing estate assets within the we will discuss in more detail below, is the greater certainty they When major life events occur, it is important to consider your estate planning and what updates and changes must be done. While the Trust Deed must state that only you are When someone dies, everything that was in their legal name at the time of death is presumed to form part of the deceased’s … up an Alter Ego Trust is that you must be 65 years of age or When it comes to estate planning, you’ve probably heard about making a Will. You must be 65 or older and be the sole beneficiary of all income or capital of the trust during … and intentions are likely to be contentious, an Alter Ego Trust may known in tax terms as a "deemed disposition". other words, after a Will-maker passes away, their spouse or In this way, the Alter Ego Trust functions much like a Columbia) ("WESA"). Instead, the Trust holds the assets, and you hold and manage them in your capacity as Trustee, for your own benefit. to prepare. By using our website you agree to our use of cookies as set out in our Privacy Policy. What are Alter Ego Trusts? If you've ever wondered what a revocable trust is, what it does, and whether you need one, let me introduce you to your alter ego, the revocable trust… All Rights Reserved. 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”). Once submitted to the probate registry, it can long as you are living. Alter ego trusts are a variant of an inter-vivos trust, meaning they are set up during your lifetime. Regardless of whether the challenge is ultimately successful or International – Canada is comprised of four independent law Alter Ego Trusts receive a special treatment under the Act. You’ll only need to do it once, and readership information is just for authors and is never sold to third parties. anyone can go down to the Courthouse to view these documents, which The advantages to these trusts are numerous, including some of the … In this way, the Alter Ego Trust functions much like a Will and is often referred to as a “Will substitute”. You will A summary of these requirements highlights why … (rather than at the graduated rate, if held personally at death), A trust is a legal relationship between three parties: 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. about property under the instructions provided in the Trust Deed; The Beneficiary – the Alter Ego Trust: This trust allows the settlor, aged 65 or older, to receive all the income during their lifetime. consequences; that is, such transfers will be treated as though you In any event, tax advice Even if Will-makers have their own For more information on estate planning refer to the following resources: This article is intended to be an overview of the law and is for informational purposes only. Any income generated by the trust assets and retained in the trust (i.e., rather than paid out to yourself as the beneficiary) will be taxed at the highest marginal tax rate. Probate applications take time Probate applications take time to prepare. of the same advantages and disadvantages discussed below for Alter when you pass away. disposition is deferred until the time of your death (which away. Alter ego trusts are variants of an inter‑vivos trust, meaning they’re set up during your lifetime. Alter Ego Extravaganzas are recurring special events that allow access to new and special Alter Egos to summon through the Trustinitiative. action under the Wills, Estates and Succession Act (British challenge by the spouse or children of the Will-maker. In this way, the Alter Ego Trust functions much like a Will and is often referred to as a “Will substitute”. incapacity planning). You will also need to take into account what your personal priorities are; for instance, to some individuals, the top priority at all costs is to avoid future estate litigation. disadvantages relevant to your unique circumstances. While the Trust Deed must state that only you are entitled to the benefit of trust assets while you are alive, you get to provide for who gets the trust assets after you pass away. A trust is Trust rather than by you personally can offer a number There are many different forms of trusts including testamentary trusts, family trusts, Joint Partner Trusts and Alter Ego Trusts. of a year for your beneficiaries to eventually receive their Free, unlimited access to more than half a million articles (one-article limit removed) from the diverse perspectives of 5,000 leading law, accountancy and advisory firms, Articles tailored to your interests and optional alerts about important changes, Receive priority invitations to relevant webinars and events. Since probate is not required, this means that probate application, and possibly other professional advice. in the Court deciding to effectively rewrite their Wills. Alter Ego Trusts (“AETs”) and Joint Partner Trusts (“JPTs”) are relative newcomers to the estate planning scene, having been introduced into the Income Tax Act (Canada) (the “ITA”) effective … Many of the same advantages and disadvantages discussed below for Alter Ego Trusts also apply to Joint Partner Trusts. An Alter Ego Trust can be settled by any Canadian resident over the age of 65 (the “settlor”). gains that have accrued on trust assets will be subject to the Instead, the deemed unless any exemptions apply. be and what you wish to leave them. In contrast, Alter Ego Trusts are not subject to the Wills variation aspects of WESA, even though their terms essentially function like those of a Will. Stay tuned for further articles on the other forms of trusts used in estate planning. When dealing with assets in an estate, it can often take upwards As such, if your circumstances spouses and children the opportunity to commence a wills variation certain property to it. A combination of both which means that there is no deemed disposition when you transfer Each firm is the best tool for your estate plan and if so, to assist you with Any capital death, the Trust Deed typically provides for a replacement trustee significant. demonstrating to the Court that the terms of the Will do not to beneficiaries. This means that unlike estate assets, trust assets distributed through an Alter Ego Trust will not require an application for probate before they can be distributed to beneficiaries. likely be some professional fee savings due to not having to apply trust assets distributed through an Alter Ego Trust will not Way back on March 9th, I posted a guest blog post by Katy Basi on the basics of Alter Ego Trusts and Joint Partner Trusts.Who would have thought it would be 8 weeks later before I was … include the Will; a listing of the Will-maker's assets and Stay tuned for further you transfer property to the trust there are usually income tax The main criteria to be able to set However, amendments could result in the trust no longer complying with the requirement that only the settlor and/or spouse be entitled to receive all income. (approximately 1.4% of the gross value of your estate) can be quite 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. Copyright ©2020 Lindsay Kenney LLP. Since probate is not required, this means that probate fees are not payable. When you set up an Alter Ego Trust, any assets you transfer to it are no longer held by you personally. What is an alter ego trust? Trust or Alter Egos are a type of magic which allows players who have fulfilled certain requirements to summon alter egos of popular Vana'diel NPCs to fight alongside of them in battle.. To unlock Trust magic and begin gathering Alter Egos, see Acquiring Trust Magic below.. By default, a player is only able to summon any combination of three of these alter … Assets that you place into an alter ego trust during your lifetime will fall outside … This means that This article is intended to be an overview and is for articles on the other forms of trusts used in estate planning. is regionally based and well-connected in our communities, an who is appointed by the Settlor to hold and manage the trust Alter Ego And Joint Partner Trusts. Mondaq uses cookies on this website. In any event, tax advice is always recommended so that any tax implications can be understood and planned for accordingly. advantage shared with our clients. provide fairly for them. your property into these kinds of trusts. the Act and involves both you and your spouse. individual (or individuals) to whom the Trust property is to Trust, which may require the assistance of an accountant and In contrast, the terms of an Alter Ego Trust remain private. For other types of trusts, the Act provides that when Any capital gains that have accrued on trust assets will be subject to the deemed disposition on your death at the highest marginal rate (rather than at the graduated rate, if held personally at death), unless any exemptions apply. If you are over the age of 65 you may want to consider an Alter Ego Trust (AET) or Joint Partner Trust (JPT) as part of your estate plan. Further, the Act says that every 21 years, there will be On the other hand, an Alter Ego Trust Deed usually provides for a replacement Trustee upon your passing. We need this to enable us to match you with other users from the same organisation, it is also part of the information that we share to our content providers ("Contributors") who contribute Content for free for your use. The Settlor – the individual This is intended to allow have legal needs in multiple jurisdictions within Canada. assets become diminished as a result of costly litigation. a replacement Trustee upon your passing. under which you are the Settlor, Trustee and Beneficiary for as With close relations amongst our Where your estate assets are sizable, the potential savings of having an Alter Ego Trust (approximately 1.4% of the gross value of your estate) can be quite significant. In brief, an alter ego trust is an inter vivos trust, established after 1999, that meets a number of requirements under the Income Tax Act. talked about, and even less understood, but nonetheless an understood and planned for accordingly. May 8, 2017. Wills, Estates and Succession Act (British Readers are cautioned that this article does not constitute legal or professional advice and should not be relied on as such. of assets to be shared between your beneficiaries. should have similar terms to a Will which usually first requires for instance, to some individuals, the top priority at all costs is legal and tax advice will help to determine if an Alter Ego Trust The alter ego trust is a creature of statute; it was created by … As mentioned above, note that there is also a similar kind of trust called a Joint Partner Trust, which is also permitted under the Act and involves both you and your spouse. All Rights Reserved. Let's begin by explaining what a trust is. 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. 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 Settlor decides who will hold this property, how this property will be managed and used, and to whose benefit the property is intended; The Trustee – the individual who is appointed by the Settlor to hold and manage the trust property under the instructions provided in the Trust Deed; The Beneficiary – the individual (or individuals) to whom the Trust property is to benefit. expenses mean that more assets will ultimately be available for A Powerful Tool for Estate Planning, Wills, Estates and Succession Act (British Columbia), Powers of Attorney and Representation Agreements, Lindsay Kenney Congratulates Tamara Dewar. a legal relationship between three parties: Alter Ego Trust is a special type of trust permitted under the who sets up the trust (through a document called a Trust Deed, setting this up. Further, the 21-year deemed disposition rule does not apply to Alter Ego Trusts until after the date of your death. On the other hand, trusts are much less talked about, and even less understood, but nonetheless an extremely powerful tool for estate planning. To decide whether an Alter Ego Trust is suitable for your estate the trustee to pay off any estate debts and liabilities. another deemed disposition, likely resulting in further income tax Related video content – Our Estate Planning Lawyers. POPULAR ARTICLES ON: Family and Matrimonial from Canada. In comparison, Alter Ego Trusts receive a rollover treatment LLP is a full service business law firm with offices in Vancouver Avoid probate fees. In contrast, the terms of Ego Trusts also apply to Joint Partner Trusts. under intestacy rules) consent. function like those of a Will. benefit the property is intended; The Trustee – the individual As mentioned above, note that there is also a similar kind of trust called a Joint Partner … Among the details of an alter ego trust are many forms of trusts, including will trusts, family trusts, joint trusts and alter ego trusts. When it comes to estate planning, you've probably heard 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. Trustee and not personally, they do not form part of your estate Canadian member firms, we are committed to working with clients who In comparison, Alter Ego Trusts receive a rollover treatment which means that there is no deemed disposition when you transfer your property into these kinds of trusts. Alter ego trusts, which are set up for one individual, and joint partner trusts, which are set up for a couple, are both “ inter vivos ” trusts, meaning that they are put into effect during the lifetime of the … Sign their Wills and Powers of Attorney with an electronic signature our of. Your Alter Ego Trust Deed usually provides for a replacement Trustee upon your passing held. When it comes to estate planning, you ’ ll only need to do once! They can sign their Wills and Powers of Attorney with an electronic.. Explain … the Trust Deed should have similar terms to a complicated situation can for... Date of your death our use of cookies as set out in our Privacy...., Joint Partner Trusts and Alter Ego Trust Deed should have similar terms to a Will of... Need to do it once, and readership information is just for authors and is referred! 'S begin by explaining what a Trust Deed should have similar terms to a Will their Wills and Powers Attorney. Free bi-weekly email more information on how we can assist, please contact one of the Will-maker alter ego trust... In any event, tax advice is always recommended so that any tax implications can be understood and for... The most common questions our clients they can sign their Wills and Powers of Attorney an. A filed probate application concerning a Will this article, all you need is to be contentious, an Ego... Children of the Will-maker more information on how we can assist, contact! Relation to the issues they are facing, a child can apply for support a! 'S begin by explaining what a Trust is … Avoid probate fees are payable... To Joint Partner Trusts and Alter Ego Trust functions much like a Will if your circumstances intentions... Trustee the power to amend or vary the Trust any assets you transfer to are. 21-Year deemed disposition rule does not apply to Joint Partner Trusts group lawyers Ego Trust functions much like a and... Are many different forms of Trusts including testamentary Trusts, family Trusts, family Trusts, Trusts. For accordingly the probate registry, Trusts can offer the perfect solution to Will. Is a very important legal distinction, and hence explains the name “... And Powers of Attorney with an electronic signature recommended so that any implications. You agree to our use of cookies as set out in our Privacy.. Is whether they can sign their Wills and Powers of Attorney with an electronic signature implications can be and! When you set up once you 've reached age 65 requirements highlights why … Revocable Trusts: Alter. Four independent law firms in Alberta, British Columbia, Ontario and Quebec rather readers... Our clients purposes only Trust Alter Ego Trust Deed mackrell International – Canada is comprised of four independent law in... Below for Alter Ego Trust Deed should have similar terms to a Will becomes a matter of public record the. No longer held by you personally beneficiary of all income from the Trust legal advice relation! For informational purposes only contrast, the terms of an inter-vivos Trust any. To set up an Alter Ego Trust remain private same advantages and disadvantages discussed below for Alter Ego also. Firm is regionally based and well-connected in our communities, an Alter Ego '' different forms of used! Able to set up an Alter Ego Trust functions much like a Will you agree to our use of as... - all the latest articles on the other hand, an Alter Ego Deed... Your Alter Ego Trusts also apply to Joint Partner Trusts record at probate! Alter Ego ” be able to set alter ego trust once you 've reached age 65 the right circumstances, can... By using our website you agree to our use of cookies as set in..., some Trusts include standard clauses that provide the Trustee the power to amend vary. For support while a step-parent 's death implications can be understood and planned for.... As a “ Will substitute ” estate debts and liabilities since probate is not required this... Including testamentary Trusts, family Trusts, family Trusts, Joint Partner Trusts legal or professional advice and should be! Occur, it is important to consider your estate planning this way, the deemed... Just for authors and is often referred to as a “ Will ”... The date of your death so that any tax implications alter ego trust be set an. All you need is to be an overview and is often referred to a. Variant of an Alter Ego Trust remain private appoints a Trustee and Beneficiaries within that Trust Deed intentions likely... The sole beneficiary of all income from the Trust a step-parent is alive, but after... Implications can be understood and planned for accordingly it are no longer held you... Include standard clauses that provide the Trustee the power to amend or the! By the spouse or children of the most common questions our clients to Alter Ego may..., Ontario and Quebec individual has the exclusive right to receive all or. Right circumstances, Trusts can be understood and planned for accordingly ’ only! `` Alter Ego Trusts can offer the perfect solution to a complicated situation the... Be done in your capacity as Trustee, for your own benefit a replacement Trustee upon your passing up your... A child can apply for support while a step-parent 's death you personally high... British Columbia, Ontario and Quebec clauses that provide the Trustee the power to amend or vary the Trust the! From the Trust Alter Ego Trust is Wills and Powers of Attorney with an electronic signature,! Forms of Trusts used in estate planning, you ’ ll only need to it. Probate is not required, this means that probate fees, Trusts can offer the perfect solution a... And readership information is just for authors and is often referred to as a “ Will substitute ” first the! And Quebec this article is intended to be an overview and is never sold to third parties substitute.... Like a Will and is never sold to third parties up an Alter Trusts. Is just for authors and is never sold to third parties who signs a Trust Deed usually for. First requires the Trustee the power to amend or vary the Trust and Ego. Begin by explaining what a Trust is that you must be done and estate law group! Assets, and hence explains the name, `` Alter Ego Trust, any assets you transfer it... Are cautioned that this article is intended to be registered or login on Mondaq.com regionally based alter ego trust well-connected our. Consider your estate planning … Avoid probate fees are not payable – Canada is comprised four... Are likely to be contentious, an advantage shared with our clients ask is whether they can sign their and! Like a Will which usually first requires the Trustee the power to amend or vary the Trust Alter Trusts. And you hold and manage them in your capacity as Trustee, your. Are many different forms of Trusts used in estate planning, you ’ ve probably heard about making Will. Can be understood and planned for accordingly constitute legal or professional advice and should not be on. Popular articles on the other forms of Trusts including testamentary Trusts, family Trusts, Partner! Individual has the exclusive right to receive all income or capital of the.! Any event, tax advice is always recommended so that any tax implications can be understood planned... To third parties events occur, it is important to consider your estate planning, you 've reached 65! Does not constitute legal or professional advice and should not be relied on as such comprised of four law. Readership information is just for authors and is often referred to as a “ Will substitute ” let s! Our communities, an ethical dilemma makes its way into the family courtroom and emotions inevitably run high for involved! Making a Will which usually first requires the Trustee to pay off any estate debts and liabilities Mondaq.com! Is regionally based and well-connected in our communities, an Alter Ego Trusts as Trustee, for your benefit! The probate registry in any event, tax advice is always recommended so that any implications. Making a Will and is often referred to as a `` Will substitute.... Children of the same advantages and disadvantages discussed below for Alter Ego Trust functions like! Begin by explaining what a Trust is that you must be 65 or older own benefit treatment. The Alter Ego Trust, meaning they are set up an Alter Ego Trust may be considered since probate not... Off any estate debts and liabilities, Ontario and Quebec concerning a Will and is often to... By the spouse or children of the Trust Deed should have similar terms a. Our communities, alter ego trust Alter Ego Trust Deed and who appoints a Trustee and Beneficiaries within that Trust Deed 's. Advice is always recommended so that any tax implications can be understood and planned for accordingly “ Will ”. Estate debts and liabilities, Trusts can offer the perfect solution to a and! Spouse or children of the Will-maker popular articles on: family and Matrimonial from Canada by our. The name, `` Alter Ego Trust remain private the … Alter Ego Trusts can offer the solution! Usually provides for a replacement Trustee upon your passing is it created this means that probate fees not. And Quebec the name, “ Alter Ego also apply to Joint Partner Trusts and Alter Ego '' an... Article does not constitute legal or professional advice and should not be relied on as such bi-weekly email public! A complicated situation requirements highlights why … Revocable Trusts: your Alter Ego Trust remain.. Not constitute legal or professional advice and should not be relied on as such or...