Preserving Wealth Through Living Trusts and Inter Vivos Trusts

Are you concerned that your assets will be diminished through probate taxes and legal fees upon your death? Do you need information about how to manage and transfer assets now and on death effectively and tax-efficiently? Are you looking to minimize taxes upon death and maximize your estate for your beneficiaries?

Professional legal help regarding the use of trusts can preserve wealth. At the Toronto, Ontario law firm of O’Sullivan Estate Lawyers LLP, we provide clients with tailored and cost-effective trust planning.

Selecting a Trust to Meet Your Needs

We will work with you to plan and establish a trust that helps you protect your wealth for future generations. Contact our law firm to learn more during a meeting with one of our skilled Toronto estate and trust lawyers.

For instance, trusts can be used as a will substitute. If you establish a trust and place assets into it, its ownership can pass directly to its beneficiaries upon your death. As a result, probate taxes and the delay and expense of probate are avoided.

What Are the Advantages of an Inter Vivos Trust?

An inter vivos trust is a trust that is established during one’s lifetime by the transfer of assets to the trust. Some of the uses of an inter vivos trust include reducing income taxes by splitting income with your family members who are in lower income tax brackets, funding children’s and grandchildren’s education and other expenses, providing for a family member with special needs or as part of an “estate freeze” to minimize capital gains tax on death using a private corporation.

There are many varieties of inter vivos or living trusts. For instance, alter ego trusts and joint partner trusts are available to those who are over the age of 65. They have a variety of possible advantages depending on one’s individual circumstances, including acting as a will substitute, reducing probate taxes, ensuring capital succession to family members and allowing privacy of one’s affairs, as opposed to a will that becomes a public document once it is probated.

What Are the Advantages of Testamentary Trusts?

A testamentary trust is established under a will and only goes into effect upon the testator’s death. It can also allow for income splitting among family members, protect your wealth from additional probate taxes payable on a beneficiary’s death, ensure capital succession to your intended beneficiaries, and can provide greater protection against claims made against a beneficiary, including matrimonial and creditor claims.

Other Specialized Inter Vivos and Testamentary Trusts

There are a variety of inter vivos and testamentary trusts that can be used to protect your wealth and minimize tax, including:

• Family trusts
• Life insurance trusts
• Special needs trusts for persons under a disability

Contact Us for a Consultation

We have helped many clients create advantageous alter ego trusts, joint partner trusts, living trusts and inter vivos trusts. Living trusts, inter vivos trusts and other trusts can reduce tax and provide numerous other benefits. For more information about the Ontario living trust lawyers of O’Sullivan Estate Lawyers LLP, contact our law firm.