Written by Ron Cooke, President & Founder of Strategic Wealth Protection Partners in Ontario
What are the main disadvantages of a Trust?
One of the main disadvantages of a trust is the cost and complexity involved in setting it up and maintaining it.
Legal and administrative fees can be higher than those of a simple will. Trusts also require ongoing management, including the transfer of assets into the trust, which can be time-consuming.
In some cases, there may be limited flexibility if circumstances change, depending on the type of trust established. Additionally, trusts may not directly reduce taxes unless combined with specific tax-saving strategies, which might add another layer of planning.
What are the advantages of a Trust?
Trusts offer numerous benefits, such as avoiding probate, which can save time, reduce costs, and maintain privacy.
They provide control over how and when assets are distributed, ensuring your wishes are honored even after you’re gone. Trusts are particularly helpful for protecting assets from creditors or disputes and managing the inheritance of minor or vulnerable beneficiaries.
Trusts also offer continuity in managing your assets in the event of incapacity, providing peace of mind for you and your loved ones.
For high-net-worth individuals, trusts can play a crucial role in comprehensive estate planning.
What are the main types of Trusts that high-net-worth families use for Estate Planning?
High-net-worth families often utilize several types of trusts, including living trusts, testamentary trusts, and family trusts.
Living trusts are created during one’s lifetime and offer flexibility and control over assets. Testamentary trusts, established through a will, come into effect upon death and can provide tax advantages for beneficiaries. Family trusts, also known as inter vivos trusts, help distribute income to family members in a tax-efficient manner.
These trusts can be tailored to meet specific goals, such as protecting generational wealth or funding education for children and grandchildren.
At what point should you consider getting a Living Trust?
You should consider a living trust when your estate planning needs go beyond what a simple will can achieve.
This is particularly true if you have significant assets, own property in multiple jurisdictions, or have complex family dynamics, such as blended families or minor children. A living trust is also beneficial if you want to avoid probate, ensure privacy, or plan for potential incapacity.
Consulting with a financial planner can help you determine the right time and strategy for incorporating a living trust into your estate plan.
When to consider a living trust?
Consider a living trust if:
- You have significant assets
- You own multiple properties
- You own properties in multiple jurisdictions
- You have complex family dynamics
- You have a blended family
- You have minor children
- You wish to plan for potential incapacity
- You want to avoid probate
- You want to ensure privacy
How does a Living Trust help families minimize tax?
While a living trust doesn’t directly reduce taxes, it can complement other tax-saving strategies to minimize the overall tax burden.
For example, combining a living trust with gifting strategies or tax-efficient investments can help reduce the taxable estate.
In addition, by avoiding probate, a living trust also eliminates some associated fees, preserving more of your wealth for your beneficiaries. Moreover, trusts can be structured to spread income among beneficiaries, potentially lowering the overall tax rate on distributed assets.
Expert guidance ensures your living trust is optimized for tax efficiency within your broader estate plan.
Discover the Benefits of a Living Trust in Ontario
Are you an Ontario resident considering a living trust as part of your estate planning?
At Strategic Wealth Protection Partners, we’re here to guide you through every step of the process with expert advice and personalized support. Begin your estate planning journey today with a Living Estate Plan Consultation from our experienced team.
Our mission at SWPP is to help you create an estate plan that secures your legacy, shields your assets from unnecessary taxation, and ensures your loved ones are cared for. By designing a living trust tailored to your goals, our experts will help you build a plan that truly reflects your values and priorities.
Take control of your future—start planning today!
Schedule a Living Estate Plan Consultation
Planning your legacy is about more than numbers—it’s about ensuring your family remembers you and your values are honoured for many years to come.
Estate planning and trusts can feel overwhelming, especially if it’s your first time. That’s why we’re here.
With our simple, 5-Step Living Estate Plan, we make the process easy, helping you create a comprehensive estate plan or trust that protects your assets from taxes and probate fees while preserving your legacy. Tools like The Final Word Journal capture your story, wishes, and essential details like accounts and end-of-life plans, ensuring your family has clarity and comfort.
Take the first step today—schedule a consultation call and give your family the ultimate gift: peace of mind and the assurance they were always your priority.
Read More
If you’re starting your estate planning process, you may find these articles helpful:
- Is a Living Trust Better than a Will in Canada?
- What Is the Cost of a Living Trust in Canada?
- Why the ‘death binder’ is becoming an essential part of estate planning
About the Author
RON COOKE, PRESIDENT & FOUNDER OF STRATEGIC WEALTH PROTECTION PARTNERS
With over 30 years in financial services, I’ve seen the challenges families face when a loved one passes—lost assets, unnecessary taxes, and emotional stress. That’s why I created the Living Estate Plan, a comprehensive process to protect assets, eliminate estate and probate fees, and create legacies that are remembered for many years to come.
This plan ensures your family receives not just your wealth, but a meaningful reminder of your care and love. Tools like The Final Word Journal capture your story, wishes, and essential details, offering clarity and comfort during difficult times.
Your final gift should be more than money—it should be peace of mind, cherished memories, and an organized estate.
Schedule a Call
Schedule a 30-minute consultation call with Strategic Wealth Protection Partners. Click HERE to schedule a consultation.
