Trusts
Protecting your assets and providing for the people who matter most requires thoughtful planning. Whether you're preparing for the future, supporting family members, preserving business interests, or establishing arrangements for the management of inherited property, a properly structured trust can provide flexibility, continuity, and greater control over how assets are managed and distributed.
At Ivy Law, we provide strategic and personalized legal guidance for individuals, families, business owners, and trustees navigating trust planning and administration across Alberta and British Columbia. Our wills and estate lawyers assist clients with establishing trusts, preparing trust agreements, defining trustee responsibilities, and developing arrangements designed to support their long-term financial and estate planning objectives.
Our team assists clients throughout Calgary, Lethbridge, Medicine Hat, Red Deer, Vancouver, Surrey, and Abbotsford, offering practical legal support for family trusts, testamentary trusts, beneficiary arrangements, trust administration, and related estate planning matters.
Get the legal guidance you need. Contact IVY Law for a free, confidential consultation to discuss your case, understand your options, and take the first step toward protecting your rights.
Key Takeaways
- A trust is a legal arrangement in which a trustee holds and manages property for the benefit of designated beneficiaries or other legally recognized purposes.
- Trusts can provide flexibility in managing assets, supporting beneficiaries, and planning for the transfer of wealth between generations.
- Different trust structures serve different objectives, including family planning, testamentary distributions, business succession, and support for vulnerable beneficiaries.
- Trustees have significant fiduciary and legal responsibilities concerning asset management, recordkeeping, and distributions.
- Trusts may involve complex tax, reporting, and administrative obligations, making coordinated legal and accounting advice essential.
Trusts & Estate Planning Representation
Trusts are valuable estate planning tools that can help individuals and families establish structured arrangements for managing property and providing for beneficiaries.
Unlike an outright gift or inheritance, a trust may allow assets to be managed over time according to clearly defined terms and conditions.
At Ivy Law, we understand that trust planning requires careful consideration of family relationships, financial objectives, legal responsibilities, and future circumstances.
Our lawyers work closely with clients to determine whether a trust is appropriate, identify suitable structures, and prepare documents that clearly establish the intended rights and obligations.
We assist with family trusts, testamentary trusts, trust agreements, trustee appointments, and arrangements involving beneficiaries with specific financial or personal needs.
Our team also advises trustees and beneficiaries on the interpretation of trust documents, fiduciary responsibilities, and legal issues arising during administration.
Whether you’re establishing a trust for your children, planning for business succession, or managing assets for future generations, we provide practical legal guidance tailored to your circumstances.
Understanding Trusts in Alberta & British Columbia
A trust generally involves a legal relationship in which a trustee holds or manages property for the benefit of one or more beneficiaries, or for another legally recognized purpose.
Trust arrangements may be established during a person’s lifetime or through testamentary instructions that take effect following death.
Important legal considerations include:
- Trust Structure: Determining the appropriate type of trust based on the intended beneficiaries, assets, objectives, and legal requirements.
- Trustees & Fiduciary Duties: Appointing individuals or institutions responsible for administering trust property in accordance with the trust terms and applicable law.
- Beneficiary Rights: Defining who may benefit from the trust and the nature of their interests or entitlements.
- Trust Property: Identifying the assets to be transferred into the trust and addressing the legal requirements for transferring ownership.
- Distribution Provisions: Establishing when and how trust income or capital may be distributed to beneficiaries.
- Trustee Discretion: Determining whether trustees may exercise discretion concerning distributions, investments, or other matters within the trust’s terms.
- Tax & Reporting Considerations: Evaluating potential income tax consequences, trust reporting obligations, and other financial implications with qualified tax professionals.
- Trust Administration & Termination: Establishing procedures for ongoing management, accounting, amendments where legally permitted, and eventual distribution or termination.
Family Trusts
Family trusts may be established to hold and manage assets for the benefit of family members.
Depending on their structure, they may provide flexibility in managing family wealth, supporting beneficiaries, and planning for future ownership transitions.
Family trusts are sometimes used in connection with business succession planning or the management of family-owned assets.
However, establishing a family trust does not automatically provide tax savings, creditor protection, or exemption from estate-related obligations.
Testamentary Trusts
A testamentary trust is generally established through a will and takes effect following the testator’s death.
These trusts may be used to provide for minor children, manage inherited assets over time, or establish conditions concerning the distribution of estate property.
The trustee administers the trust according to its terms and applicable law.
Trusts for Vulnerable Beneficiaries
Trust planning may also assist families seeking to provide financial support for beneficiaries with disabilities, limited financial management experience, or other circumstances requiring additional planning.
The appropriate arrangement depends on the beneficiary’s needs, the nature of the assets, applicable benefit programs, and relevant legal requirements.
Careful drafting is particularly important where trust distributions could affect eligibility for government assistance or other benefits.
Trust Law in Alberta & British Columbia
Trusts in Alberta and British Columbia are governed by applicable provincial legislation, common law and equitable principles, and the terms of the trust instrument.
Alberta’s Trustee Act and British Columbia’s Trustee Act establish important rules concerning trustee powers, responsibilities, and trust administration.
Federal tax legislation may also affect the creation, operation, and termination of trusts.
Our lawyers help clients understand these considerations and develop trust arrangements that align with their estate planning objectives.
How We Help
- Advise on trust creation and estate planning strategies
- Draft customized trust agreements and declarations of trust
- Assist with family trust establishment
- Prepare testamentary trust provisions in wills
- Advise on trusts for minor children
- Assist with planning for vulnerable beneficiaries
- Review trust structures involving family-owned businesses
- Advise on trustee selection and appointment
- Define trustee powers, responsibilities, and limitations
- Draft trust distribution and beneficiary provisions
- Review existing trust agreements
- Advise on trust amendments where legally permitted
- Assist with trust asset transfers and documentation
- Explain trustee fiduciary obligations
- Advise on beneficiary rights and information requests
- Coordinate with tax professionals on trust-related matters
- Assist with trust administration and accounting concerns
- Address disputes involving trustees and beneficiaries
- Advise on trust termination and final distributions
- Coordinate trust planning with wills and powers of attorney
The Trust Planning Process
- Initial Consultation: Discuss your family circumstances, assets, intended beneficiaries, financial objectives, and reasons for considering a trust.
- Trust Structure Assessment: Evaluate available trust arrangements, relevant legal considerations, and whether a trust is appropriate for your objectives.
- Trustee & Beneficiary Planning: Identify proposed trustees and beneficiaries, define their roles, and consider appropriate distribution arrangements.
- Document Preparation: Draft the trust agreement or testamentary provisions, including trustee powers, beneficiary interests, and administration requirements.
- Execution & Trust Establishment: Complete applicable documentation and assist with the legal steps necessary to establish and fund the trust.
- Ongoing Administration & Review: Provide guidance concerning trustee duties, trust changes where permitted, beneficiary matters, and eventual trust distributions.
Common Trust Matters
- Family trust establishment
- Testamentary trust planning
- Trusts for minor children
- Trusts for vulnerable beneficiaries
- Discretionary trust arrangements
- Fixed-interest trusts
- Trust agreements and declarations of trust
- Trustee appointments and replacements
- Trust property transfers
- Trust asset management provisions
- Beneficiary rights and entitlements
- Trust income and capital distributions
- Trust administration and accounting
- Trustee fiduciary duties
- Family business succession trusts
- Trust planning for blended families
- Trust amendments and variations
- Trust termination and asset distribution
- Trustee and beneficiary disputes
- Trust coordination with wills and estate plans
Frequently Asked Questions
Get quick answers to questions clients frequently ask before working with our firm.
A trust is a legal arrangement in which a trustee holds and manages property for the benefit of beneficiaries or another legally recognized purpose. The trust document establishes the trustee's authority, the beneficiaries' interests, and the rules governing administration and distribution. Trusts may be created during a person's lifetime or through a will. The appropriate structure depends on the assets involved, intended beneficiaries, and planning objectives.
A family trust is commonly established during a person's lifetime to hold or manage assets for family members. A testamentary trust is created through a will and generally takes effect after the testator's death. Both may provide structured asset management and beneficiary support, but they differ in their establishment, administration, and potential tax treatment. The most appropriate arrangement depends on your circumstances and objectives.
A properly structured trust may help manage assets for beneficiaries who are minors, financially inexperienced, or otherwise require support. The trust can establish conditions governing distributions and appoint trustees to oversee the property. However, the degree of protection depends on the trust's terms, applicable law, and the circumstances. Trusts do not automatically shield assets from creditors, family property claims, or other legal obligations.
Yes. Trusts may be subject to distinct income tax rules, reporting obligations, and tax consequences depending on their structure and circumstances. Certain trusts may be subject to deemed disposition rules, attribution provisions, or other tax requirements. The tax treatment of trust income and distributions can also vary. Establishing a trust should involve coordinated legal and tax advice to understand the potential financial implications.
The ability to amend or terminate a trust depends on its terms, whether it is revocable or irrevocable, the rights of beneficiaries, and applicable law. Some trusts expressly permit certain changes, while others may require beneficiary consent, court approval, or another legally available process. A lawyer can review the trust instrument and explain whether a proposed amendment, variation, or termination is possible.
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