Family Trust Law in British Columbia

Family Trust Lawyers in British Columbia

Family trusts are attractive options for business owners and entrepreneurs looking to protect their assets and transfer wealth to their children effectively. In addition to potential tax advantages, family trusts can help secure your assets from creditors. The family trust experts at Vest Estate Law can guide you through the establishment of a family trust and assist in creating your trust agreement.

What is a family trust in British Columbia?

A family trust, like any other trust, is a legal entity that holds assets or property on behalf of third-party beneficiaries. Trusts are versatile and can be set up in various ways, but all family trusts aim to protect the interests of family members, despite the term “family trust” not having a specific legal meaning.

Who are the main participants in a family trust?

The main participants in a family trust are:

1. The settlor – the person who creates the trust by transferring assets.
2. The trustee(s) – representatives who are the legal owners of the trust’s assets, responsible for managing and allocating assets to beneficiaries according to the trust agreement.
3. Beneficiary/beneficiaries – those who receive the assets from the trust, such as family members holding shares in a family business.

What are the main benefits of starting a family trust?

Family trusts offer several benefits:

1. Effective transfer of wealth to children
2. Lower taxes through income-splitting and estate tax reduction
3. Asset protection from creditors in lawsuits or bankruptcy proceedings
4. Confidentiality of trust information

How do you establish a family trust in British Columbia?

Establishing a family trust in British Columbia involves the following steps:

1. Create the trust agreement with relevant clauses
2. Bring the trust into legal existence with an irrevocable donation of property
3. Register the donation
4. Open a bank account in the trust’s name
5. Transfer assets into the trust
6. Ensure the trustee performs administrative duties

The family trust experts at Vest Estate Law can assist you with each step in establishing your trust.

Are you considering a family trust?

Due to the complexities involved in creating trust agreements that accurately reflect your goals, it is advisable to seek legal counsel before establishing a family trust. At Vest Estate Law, we can advise and help you set up your trust correctly. Begin with a one-on-one consultation with one of our trust lawyers, who will analyze your situation and recommend the type of family trust that best suits your needs.