Best Trusts Lawyers in Invermere

About Trusts Law in Invermere, Canada

A trust is a legal arrangement whereby one party (the trustee) holds and manages property or assets for the benefit of another party (the beneficiary). In Invermere, as in the rest of British Columbia, trusts are governed primarily by provincial law, including the Wills, Estates and Succession Act and the Trustee Act. People often use trusts for estate planning, protecting assets, supporting family members, and charitable purposes. Trusts can be created during a person's lifetime (inter vivos trusts) or upon their death (testamentary trusts). Establishing a trust can have lasting implications on taxation, inheritance, and the management of property.

Why You May Need a Lawyer

Seeking the assistance of a trusts lawyer in Invermere, BC, can be critical in many situations, including:

• Planning your estate and ensuring your assets are distributed according to your wishes.
• Setting up trusts for minor children, family members with disabilities, or for specific purposes such as education or charitable giving.
• Dealing with complex assets, such as businesses or real estate, that require careful trust arrangements.
• Serving as a trustee and needing guidance about your fiduciary duties and responsibilities.
• Handling disputes among beneficiaries, or between trustees and beneficiaries.
• Protecting family wealth from creditors, divorce, or other claims.
• Navigating changes in law, tax implications, or administrative requirements related to trusts.

Local Laws Overview

Trusts in Invermere, British Columbia, are subject to both provincial legislation and, in some cases, federal tax law. Key legal aspects include:

• The Trustee Act of British Columbia: Outlines the powers and duties of trustees and the administration of trusts in the province.
• Wills, Estates and Succession Act (WESA): Governs the administration of estates and testamentary trusts, including the probate process.
• Income Tax Act (Canada): Regulates the taxation of trusts, including reporting requirements and types of trusts with different tax treatment.
• The Family Law Act: Trusts can be subject to claims during family law proceedings, so understanding family law implications is important.
• Real Property Rules: Trusts involving real estate must comply with property transfer and land title registration rules in British Columbia.

Frequently Asked Questions

What is a trust and how does it work?

A trust is a legal arrangement where a trustee holds and manages property or assets for the benefit of beneficiaries, according to the terms set out by the person creating the trust (the settlor).

What are the common types of trusts used in Invermere?

Typical trusts include family trusts, testamentary trusts (created by a will), inter vivos trusts (created during the settlor's lifetime), trusts for minors, and charitable trusts.

Why should I consider setting up a trust as part of my estate plan?

Trusts can help manage the distribution of assets, provide for minors or vulnerable individuals, reduce tax liabilities, and avoid probate.

Do trusts avoid probate in British Columbia?

Assets held in a valid trust generally do not go through the probate process, which can save time and probate fees for beneficiaries.

Who can serve as a trustee?

Any adult capable of managing affairs can act as a trustee; this includes family members, friends, professionals, or trust companies. It is important to choose someone trustworthy and capable.

What are a trustee’s legal duties?

Trustees are fiduciaries and must act in the best interest of the beneficiaries, manage assets prudently, keep accurate records, and follow the trust's terms.

How are trusts taxed in Canada?

Trusts are generally taxed as separate entities. Income retained in a trust is typically taxed at the highest marginal rate, but income paid out to beneficiaries may be taxed in their hands at their respective rates.

Can a trust be contested?

Yes, trusts can be challenged in court for reasons such as lack of capacity, undue influence, or improper administration.

What happens if a trustee can no longer fulfill their duties?

If a trustee is unable or unwilling to act, the trust deed may name an alternate trustee, or the court can appoint a replacement.

How do I change or revoke a trust?

Revocable (or discretionary) trusts can typically be changed or revoked by the settlor, while irrevocable trusts generally cannot. The ability to amend depends on the terms set out in the trust document.

Additional Resources

If you need further information or assistance, consider reaching out to the following:

• Law Society of British Columbia: Regulates lawyers in BC and offers a lawyer referral service.
• Public Guardian and Trustee of British Columbia: Provides information, oversight, and administration for certain trust matters, such as trusts for minors or those with disabilities.
• BC Ministry of Attorney General: Provides public legal education and resources related to estate and trust law.
• Invermere & District Chamber of Commerce: Can help you find local legal professionals with expertise in trusts.
• Local libraries and legal clinics: May provide access to legal information, books, and occasional free legal clinics.

Next Steps

If you think a trust may be right for you or if you need legal advice regarding an existing trust, consider the following steps:

• Gather all relevant documents, such as wills, property deeds, financial records, and any existing trust agreements.
• Identify what you hope to achieve with a trust (asset protection, family provision, tax planning, etc.).
• Contact a qualified trusts lawyer in Invermere or the surrounding area. Use services such as the Law Society’s referral program if you need help finding one.
• Prepare a list of questions and concerns in advance to make the most of your consultation.
• Discuss your options with your lawyer, including the types of trusts available and their implications.
• Work with your lawyer to draft and sign appropriate trust documents, and ensure all legal requirements are satisfied.
• Review your trust arrangements regularly, especially after significant life changes, to ensure they remain suitable for your needs.