Today, I’m diving into a topic that might seem confusing: family trusts. I’m here to answer the question: What is a family trust? I know, I know—legal jargon can make your head spin faster than a tilt-a-whirl, but fear not! I’m here to give you a fast rundown on what a family trust is so you can start on your journey to discover how family trusts can be your sidekick in navigating the complex world of wealth preservation and growth.
Video Transcript: What is a family trust?
What’s a family trust?
I’m George Dube, saving the world from tax one bow tie at a time.
I’m not going to provide what I would call a legal definition for this, but more how I try and explain it in my interpretation to clients.
And so I’ll start with, it’s this form of entity that is holding assets on behalf of beneficiaries of the family trust and the beneficiary, kind of loosely defined as someone who may receive the benefits of the family trust.
So in a stereotypical situation, we might have mom and dad that are through the family trust, controlling the assets, controlling the income on behalf of those beneficiaries. Later on, mom and dad can essentially as trustees, assuming that they are trustees, control and decide how they are going to distribute income, and assets on a go forward basis with that family trust.
Have more questions? Please subscribe, follow, and even share.
I want all of us to have the tax information we need to do wonderful things™.
-End transcript-
Resources
For additional resources related to this topic:
- Family Trusts: Ultimate FAQ for Real Estate Investors
- Family trusts for medical professionals: Saving taxes
- Paying kids to save taxes: Here’s how in Canada
More questions?
Still have questions? I want to help you Do Wonderful Things™, so please contact me today.
Remember – circumstances are unique! This information is summary in nature. Seek out advice from your tax advisor about your specific situation.
