What to do next
Start with the purpose, not the structure
Providing for a child, protecting a beneficiary who cannot manage money, supporting a family member with a disability without affecting benefits, or holding a business interest all point to different trust designs.
Choose the trustee carefully
Trustees hold legal duties and can be personally liable for breaching them. Consider whether a family member, a professional, or a combination is appropriate, and always name a successor.
Get tax advice at the outset
Trust taxation is complex and differs substantially between the US and Canada, including rules that deem dispositions at intervals. A trust set up without tax advice can cost more than it saves.
Frequently asked questions
What's the difference between a living and a testamentary trust?
A living (inter vivos) trust is created during your lifetime; a testamentary trust arises under your will on death. Tax treatment and uses differ.
Does a trust avoid probate?
Assets properly held in a living trust generally pass outside probate, which is a common motivation in the US. Benefits and costs differ in Canada, so weigh them locally.
Are trusts only for wealthy families?
No. Trusts for a minor child or for a beneficiary with a disability are common at ordinary asset levels, and often the main reason to set one up.
Can a trust be changed?
It depends on how it was drafted. Some are revocable, others effectively permanent. Decide this deliberately at the outset.
This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.