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Aug 8, 2024 · A trust company does not own the assets its customers assign to its management, but it assumes a legal obligation to take care of them on behalf of other parties.
- Adam Barone
The trust company does not own your assets, but it may assume some legal obligation to take care of assets on behalf of other parties, when directed. It is hired to act as a fiduciary, meaning they act on your behalf – making decisions on investments or asset distribution that are in the best interests of you or your estate.
Oct 18, 2023 · 2 Normally, a trust can distribute capital assets to Canadian resident capital beneficiaries at the trust’s cost base, resulting in no tax for the trust or the beneficiary. However, when a trust is revocable, is otherwise subject to subsection 75(2) of the ITA, or the recipient capital beneficiaries are non-residents of Canada, distributions must be done at the asset’s fair market value.
Jun 7, 2021 · In contrast, an irrevocable trust cannot be changed, revoked, or canceled after creating it, except in rare extenuating circumstances. When you transfer your assets into an irrevocable trust, you are handing over ownership of the assets within the trust to a trustee you appoint to administer this trust and distribute the assets it contains.
Oct 21, 2024 · Trust companies perform a wide range of services related to investment and asset management. Learn why to use a trust company and what they can do for you.
A trustee would then administer the assets to the beneficiary based on your trust document. Asset protection; Moving assets into a family trust may shield property from the claims of creditors. So, assets in a trust may be immune from third-party claims if a trust beneficiary loses a lawsuit or falls into debt, for example. Saving on taxes
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Feb 4, 2021 · Trust property can include real estate and personal property, whether tangible belongings or intangible ones, like a bank account or business interests. Using a trust, which is a separate legal entity from its creator, can help your heirs save time and money after your death — trust assets can avoid probate and pass to beneficiaries outside ...
