Understanding how your structure holds your assets is a key part of figuring out a plan that helps you protect assets and save assets while building your empire. I often get the question “does a family trust own my real estate?” So, the video below talks about some key points in this discussion. Watch the video, or read the transcript to learn more.
Video transcript: Does my family trust own my real estate?
Does a family trust own my real estate assets?
Common question.
I’m George Dube, saving the world from tax one bow tie at a time®.
Generally speaking, the answer is indirectly yes, directly no. Indirectly, meaning in most scenarios, we’re going to have the real estate owned by one or more corporations, and those corporations in turn are partially or wholly owned by the family trust itself.
Same really applies whether we’ve got a liquid portfolio of investments and operating business, a Hulu hoop factory, whatever it may be. We’ll normally have those assets in a corporation in turn owned by the family trust itself.
That said, there’s a special little case, and not that this is a formal name. I like to call it a TOSI Family Trust, where I may have liquid investments of a particular nature directly owned by the family trust, and my objective here is really to bypass certain tax rules that restrict how I may be splitting income with minor children or for that matter, adults that are not as involved in the business or have other requirements or tests that haven’t been met from Revenue Canada’s eyes.
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-End transcript-
Resources
For additional resources related to the tax savings, see:
- Paying kids to save taxes: Here’s how in Canada
- Family trusts for medical professionals: Saving taxes
- Family trusts: Ultimate FAQ for real estate investors
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.
