assets (regardless of whether in trust or in your estate), fewer personal reasons for their decisions, a legal challenge can result challenge by the spouse or children of the Will-maker. provide for determining who the beneficiaries of your estate will All Rights Reserved. When you set up an Alter Ego Trust, any assets you transfer to 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. planning needs, you will need to consider both the advantages and assets become diminished as a result of costly litigation. 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”). Further, the Act says that every 21 years, there will be another deemed disposition, likely resulting in further income tax being payable. 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. demonstrating to the Court that the terms of the Will do not Stay tuned for further Since such expenses are usually paid from your in the event you become incapacitated. Instead, the Trust holds the assets, and you hold and manage them in your capacity as Trustee, for your own benefit. 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. Regardless of whether the challenge is ultimately successful or had sold this property to an unrelated party for fair market value, An alter ego trust may be used to avoid wills variation claims. we will discuss in more detail below, is the greater certainty they Since probate is not required, this means that probate fees are not payable. function like those of a Will. In addition to providing for a replacement trustee on your Instead, the deemed Probate applications take time to prepare. In this way, the Alter Among their various advantages, which Avoid probate fees. One of the most common questions our clients ask is whether they can sign their Wills and Powers of Attorney with an electronic signature. action under the Wills, Estates and Succession Act (British about In BC, under WESA all Wills are susceptible to challenge by the spouse or children of the Will-maker. Creation of an AET or JPT involves the transfer of personally held assets to a trust … Let’s begin by explaining what a trust is. apply to Alter Ego Trusts until after the date of your death. probate fees are not payable. entitled to the benefit of trust assets while you are alive, you About child(ren) can seek to change the terms of the Will by will be taxed at the highest marginal tax rate. benefit. similarly occurs with personally held assets when you pass away as However, note that an As mentioned above, note that there is also a similar kind of incapacity planning). under which you are the Settlor, Trustee and Beneficiary for as to beneficiaries. Among the details of an alter ego trust are many forms of trusts, including will trusts, family trusts, joint trusts and alter ego trusts. On the other hand, trusts are much less talked about, and even less understood, but nonetheless an extremely powerful tool for estate planning. of the same advantages and disadvantages discussed below for Alter When someone dies, everything that was in their legal name at the time of death is presumed to form part of the deceased’s … Further, the Act says that every 21 years, there will be The Trust Deed should have similar terms to a Will which usually first requires the trustee to pay off any estate debts and liabilities. benefit the property is intended; The Trustee – the individual and issue a grant. Volume No. "ALTER EGO" TRUSTS A number of family court decisions in Australia and New Zealand have incorrectly created the impression that if a trust is the "alter ego" or "puppet" of the settlor it can be … A filed probate application concerning a Will becomes a matter 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. This article speaks to Alter Ego Trusts. 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. Ego". All rights reserved. advantage shared with our clients. have legal needs in multiple jurisdictions within Canada. probate application, and possibly other professional advice. extremely powerful tool for estate planning. Act. Enduring Power of Attorney may be still be advisable if you will The Settlor – the individual who sets up the trust (through a document called a Trust Deed, which is also referred to as a Trust Agreement) and contributes certain property to it. In this way, the Alter Ego Trust functions much like a Mackrell Rather, readers should obtain specific legal advice in relation to the issues they are facing. beneficiaries in the manner you've provided. While the replacement trustee of an Alter Ego Trust may require likely be some professional fee savings due to not having to apply provide fairly for them. May 8, 2017. Once 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 Stay online for … Assets that you place into an alter ego trust during your lifetime will fall outside … to avoid future estate litigation. known in tax terms as a "deemed disposition". 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. 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 … include the Will; a listing of the Will-maker's assets and assets, not having to pay these will allow a greater overall amount legal and tax advice will help to determine if an Alter Ego Trust Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. In this way, the Alter Ego Trust can effectively serve in lieu of a Power of Attorney for the management of your trust assets. also need to take into account what your personal priorities are; be considered. Alter Ego Extravaganzas are recurring special events that allow access to new and special Alter Egos to summon through the Trustinitiative. When it comes to estate planning, you’ve probably heard about making a Will. Revocable Trusts: Your Alter Ego. will usually require legal advice and assistance with respect to another deemed disposition, likely resulting in further income tax In Once submitted to the probate registry, it can take up to several months to review and approve the application, and issue a grant. your beneficiaries. After the grant is obtained, the law then Having your eventual "estate" held in an Alter Ego 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. This article is intended to be an overview and is for 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. 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. 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