Because they are creatures of statute, there are some restrictions in using such trusts.

Joint partner trust bc. Web a joint partner trust is used where the settlor and the settlor’s spouse are to be the only beneficiaries during their lifetimes. Web joint revocable trusts can be a solid option when a married couple has a generally simple estate and when total assets (combined) don’t meet the estate tax limit threshold, which is $11.58m in 2020. On the death of the last surviving spouse, the taxes are due.

Web in 2001 canada introduced two new trusts; This means there’s less asset protection, because if there’s ever a judgment over one of the spouses, all of the assets could end up being at risk. Alter ego and joint partner trusts can serve as an alternate option instead of a.

The settlor must be a canadian resident and over the age of 65 The difference is that an alter ego trust is for one person, whereas a joint partner trust is for married or common law couples. Web in general, most experts agree that separate trusts can provide more asset protection.

Web alter ego trusts and joint partner trusts are specific types of inter vivos trusts permitted under the income tax act to enable canadians to arrange their assets in a manner that results in an efficient transfer on death. An alter ego trust can be settled by an individual, whereas a spousal couple can settle a joint partner trust. The settlor must be at least 65 at the time the trust was created.

Keep in mind, though, that a joint revocable living trust, when not set up properly, may result in estate tax issues. Web the usefulness of alter ego and joint partner trusts is worth considering for individuals or couples who are aged 65 or older, as well as individuals with parents aged 65 or older who anticipate becoming responsible for managing their parents’ estates in the future as executors or trustees. Web alter ego or joint partner trust, which are trusts you create during your lifetime which set out the distribution of trust assets at the time of your death.

To set up this trust, one of the spouses must be 65 years of age or older and a canadian resident. Web alter ego trusts and joint partner trusts are inter vivos trusts, meaning they are created during an individual’s lifetime. Essentially both trusts allow a settlor of an inter vivos trust to transfer capital assets into a trust on a tax deferred basis if the following conditions are met: