Best Trusts Lawyers in Markham

About Trusts Law in Markham, Canada

A trust is a legal arrangement where one party, known as the trustee, holds and manages assets on behalf of another party, called the beneficiary. In Markham, Ontario, trust law is governed by both federal and provincial legislation, with the Ontario Trustee Act providing the primary legal framework. Trusts can be established for a variety of reasons, including estate planning, asset protection, charitable giving, and caring for dependents with special needs. Understanding how trusts operate is important to ensure your assets are managed and transferred according to your wishes.

Why You May Need a Lawyer

Trust law can be complex, and numerous situations may require legal advice or representation. Common scenarios include:

• Establishing a trust as part of estate planning to provide for children, dependents, or charities.
• Acting as a trustee and needing guidance on your legal obligations and duties.
• Concerns about how a trust is being managed or distributed.
• Disputes among beneficiaries or challenges to the validity of a trust.
• Tax implications related to trusts and estate assets.
• Providing for a family member with a disability (through a Henson Trust, for example).
• Protecting assets from creditors or in divorce situations.

A lawyer with experience in trust law can help structure trusts to meet your goals, ensure compliance with applicable laws, and assist in resolving any disputes.

Local Laws Overview

In Markham, trust law is primarily shaped by Ontario legislation and federal tax laws. Some important legal aspects to consider include:

• Ontario Trustee Act: Sets out the powers and responsibilities of trustees, including investment rules and requirements for managing trust property.
• Wills and Succession Law: Trusts often form part of a will, and there are specific requirements for creating valid testamentary trusts.
• Income Tax Act (Canada): Trusts are considered separate tax entities for most purposes. There are specific tax reporting and filing obligations for trusts and beneficiaries.
• Family Law: The treatment of trusts in divorce or separation can affect asset division.
• Disability and Benefits Laws: Special trusts (such as Henson Trusts) are available to provide for individuals with disabilities without affecting eligibility for government support.
• Charitable Trusts: Laws apply for trusts for charitable purposes, including registration and reporting rules.

It is important to note that trust law can be affected by recent court decisions and changes in legislation, making up-to-date legal advice essential.

Frequently Asked Questions

What is a trust and how does it work?

A trust is a legal relationship where a person or institution (the trustee) holds property or assets for the benefit of someone else (the beneficiary). The terms of a trust are usually set out in a trust agreement or declaratory document.

What types of trusts are common in Markham?

The most common trusts are testamentary trusts (created by a will), inter vivos (living) trusts, family trusts, Henson trusts (for people with disabilities), and charitable trusts.

Can I change or revoke a trust once it is created?

Some trusts are revocable, meaning you can change or end them, while others (such as most testamentary trusts) are irrevocable. The trust document will set out the specific terms.

Who can be a trustee?

Any competent adult or a trust company can act as a trustee. Often, people appoint family members, friends, professionals, or trust companies, depending on the complexity and assets involved.

What are the main duties of a trustee?

Trustees are responsible for managing trust property, investing assets prudently, acting in the best interests of beneficiaries, keeping proper records, and reporting or distributing as required by law and the trust document.

What is a Henson Trust?

A Henson Trust is a specific type of trust designed to benefit a person with a disability without affecting their eligibility for government benefits. Only the trustee has control over the assets, which are not counted toward the beneficiary’s assets for means-tested programs.

Are there tax implications for trusts in Markham?

Yes, trusts are generally taxed as separate entities and must file annual tax returns. The tax treatment depends on the type of trust and its income. Some trusts are taxed at the highest marginal rate.

How long does a trust last?

The duration depends on the terms of the trust. Most trusts end when the assets are fully distributed, or upon the death of the beneficiaries. Some trusts are limited by the “rule against perpetuities,” which restricts their duration.

Can a trust be challenged or contested?

Yes, trusts can be challenged on various grounds: lack of capacity, undue influence, improper execution, or breach of trustee duties. Disputes often require legal representation.

How can I find a lawyer specializing in trusts in Markham?

You can consult the Law Society of Ontario’s lawyer directory, seek referrals from financial advisors, or contact local law firms with experience in estate and trust matters.

Additional Resources

If you require more information, consider the following resources:

• Law Society of Ontario: Regulatory body providing resources and a lawyer directory.
• Ontario Ministry of the Attorney General: Offers information about wills, estates, and trusts.
• Canada Revenue Agency (CRA): For tax information about trusts.
• Community Legal Clinics: Some clinics serve Markham and York Region for general legal information.
• Markham Public Library: Has guides and references on estate planning and trusts.

Next Steps

If you think creating, managing, or administering a trust may be right for your situation, consider the following steps:

• List your assets and your goals for creating a trust (e.g., caring for dependents, minimizing taxes).
• Gather any existing estate planning documents or information.
• Consult with a trust and estates lawyer in Markham for an initial assessment.
• Discuss your wishes, the requirements of a trustee, and the needs of your beneficiaries.
• If involved in a dispute or concern about a trust, seek legal advice promptly to protect your interests.
• Stay informed about your obligations and rights as a trustee or beneficiary.

Having qualified legal support can help ensure your wishes are followed and your interests are protected under the law.