How Does a Living Trust Work in Ontario?
A living trust is a legal arrangement where you transfer ownership of your assets into a trust while you are alive, managed by a trustee for your benefit or your beneficiaries.
January 18, 2025
A living trust is a legal arrangement where you transfer ownership of your assets into a trust while you are alive, managed by a trustee for your benefit or your beneficiaries.
In Canada, trusts are generally taxed at the highest marginal tax rate for individuals unless they qualify as graduated rate estates (GREs) or certain other exceptions.
The cost of setting up a living trust in Ontario typically ranges from $2,500 to $5,000 for basic trusts, but can be higher for more complex arrangements.
Setting up a living trust in Canada involves drafting a legal document that outlines the trust’s terms, including who the trustee and beneficiaries are, and how the assets will be managed and distributed.
Putting a house in a trust can protect it from probate, saving time, money, and ensuring privacy.
Yes, trusts are taxed in Canada. Income generated within a trust, such as interest, dividends, or capital gains, is subject to taxation.
Trusts offer numerous benefits, such as avoiding probate, which can save time, reduce costs, and maintain privacy.
A living trust is a legal document that takes effect during your lifetime, allowing you to manage and distribute your assets without going through probate.
While wills are more common, the use of trusts is steadily growing in Canada, especially among individuals with significant assets or unique family dynamics.
Proper planning ensures more of your wealth passes to your loved ones while minimizing tax burdens.
SWPP helps families and business owners in Ontario with comprehensive estate planning.
SWPP’s Living Estate Plan service ensures Ontario families have an estate plan or living trust that protects their assets from unnecessary taxes and fees, including probate.
16 Industrial Parkway South, Suite 609, Aurora, ON, L4G-0R4