Best Trusts Lawyers in Coquitlam

About Trusts Law in Coquitlam, Canada

A trust is a legal arrangement where an individual or institution, known as a trustee, holds and manages assets for the benefit of another person or group, known as beneficiaries. In Coquitlam, British Columbia, trusts are used for a variety of purposes including estate planning, protecting assets, supporting charitable endeavors, and providing for minors or individuals with special needs. Trust law in Coquitlam is governed by provincial statutes such as the Trustee Act and the Wills, Estates and Succession Act, as well as common law principles developed through court decisions.

Why You May Need a Lawyer

People consider legal help with trusts for many reasons. Some common situations include:

• Setting up a trust to manage assets for children, dependents, or beneficiaries with disabilities
• Creating a trust to minimize taxes or to plan for the succession of family businesses or properties
• Administering a trust after the death of a loved one
• Understanding or resolving disputes between trustees and beneficiaries
• Ensuring compliance with both the terms of the trust and local laws
• Making changes to an existing trust or dissolving a trust
• Dealing with complex financial or legal issues involved with trust assets

Navigating the legal rules and obligations associated with trusts can be challenging, and a lawyer can help you make informed decisions that protect your interests.

Local Laws Overview

Trust law in Coquitlam follows the framework set under British Columbia statutes and Canadian common law. Key statutes include:

• The Trustee Act: Outlines the responsibilities, powers, and duties of trustees.
• The Wills, Estates and Succession Act (WESA): Governs the administration of estates and succession rules, which also impact testamentary trusts (trusts set up in a will).
• The Power of Attorney Act: Can intersect with trust arrangements for managing the affairs of individuals who are unable to do so themselves.

Trustees in Coquitlam must abide by the fiduciary duties imposed by these laws, including acting in the best interests of beneficiaries, keeping proper records, and adhering to the terms of the trust document. There may be strict requirements regarding investment of trust assets, distributions, and reporting. Failure to follow provincial trust law can result in personal liability for trustees.

Frequently Asked Questions

What is the difference between a trust and a will?

A will takes effect after death and outlines how assets should be distributed. A trust can take effect during your lifetime (inter vivos trust) or after your death (testamentary trust), and allows assets to be managed and distributed over time.

Who can be a trustee in Coquitlam?

Any adult who is mentally capable may serve as a trustee. This could be a family member, friend, professional advisor, or trust company. Trustees must act impartially and in the best interests of beneficiaries.

Is it possible to change the terms of a trust?

This depends on whether the trust is revocable (can be changed) or irrevocable (cannot be changed). Some trusts allow for certain amendments provided the trust document permits, or with consent of the beneficiaries and, sometimes, the court.

How are trusts taxed in British Columbia?

Trusts may be subject to income tax at the highest marginal rate, but certain trusts such as graduated rate estates or qualified disability trusts may have access to lower rates. Tax rules can be complex and it is wise to consult a tax professional.

Can trusts help avoid probate in Coquitlam?

Assets held in a properly structured trust do not form part of your estate for probate purposes, meaning they can be distributed without going through the court-supervised probate process.

What duties do trustees have?

Trustees must follow the terms of the trust, act in good faith, invest trust assets prudently, avoid conflicts of interest, keep accurate records, and provide information to beneficiaries as required by law.

What happens if a trustee fails in their duties?

Beneficiaries may take legal action against a trustee for breaches of trust. Courts can order compensation, removal of the trustee, or other remedies depending on the circumstances.

Can beneficiaries contest a trust?

In some cases, beneficiaries or other interested parties can challenge a trust in court, for example on grounds of undue influence, lack of capacity, or improper execution.

Are trusts public or private documents?

Unlike wills which become public after probate, trusts generally remain private documents and are not usually filed with a public registry.

How do I choose the right type of trust?

This depends on your goals, such as asset protection, tax efficiency, family support, or charitable giving. A lawyer can help you understand your options and tailor a trust to your specific needs.

Additional Resources

If you need more information about trusts in Coquitlam, the following organizations may be helpful:

• British Columbia Ministry of Attorney General - Provides information about estate and trust law in BC
• Public Guardian and Trustee of British Columbia - Offers services and oversight related to trusts, estates, and incapable adults
• Law Society of British Columbia - Helps in finding qualified lawyers in your area
• People's Law School BC - Offers easy-to-understand legal information for the public, including topics on trusts and estates

Next Steps

If you are considering setting up a trust, acting as a trustee, or are a beneficiary seeking advice, taking the following steps can help:

• Gather all relevant documents including existing wills, trust deeds, and records of assets
• Write down your goals and concerns relating to trust management, succession, and distribution
• Seek qualified legal advice from a lawyer in Coquitlam experienced in trusts and estates law
• Ask your lawyer about the tax implications and administrative requirements of setting up or managing a trust
• Maintain open communication with trustees and beneficiaries as appropriate to ensure transparency and avoid misunderstandings

Taking these steps will help protect your interests and ensure that your wishes are properly carried out. Legal professionals in Coquitlam can explain your options and guide you through every stage of the trust process.