Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 21 JUNE 2019

Alter Ego And Joint Partner Trusts - June 2019

Norton Rose Fulbright Canada LLP
Explore more from Norton Rose Fulbright Canada LLP

An alter ego trust can only be created by an individual who is 65 years of age or older.

CanadaFamily and Matrimonial
Norton Rose Fulbright Canada LLP
Norton Rose Fulbright Canada LLP
Author LinkedIn connections

The Income Tax Act of Canada (the "Tax Act") includes specific estate planning opportunities for people who are 65 or older: alter ego and joint partner trusts. Since those trusts were introduced in 2001, they have become a central component of many estate plans.

What is a trust?

A "trust" is not a legal entity, although it is treated as such for Canadian tax purposes. It is the word used to describe the relationships created when property is transferred by one person (the "settlor") to another (the "trustee") to hold for the benefit of individuals or organizations such as charities (the "beneficiaries").

Alter ego trusts

An alter ego trust can only be created by an individual who is 65 years of age or older. The terms of the trust must provide that the settlor is entitled to all of the income that arises from the trust property before his or her death, and only the settlor may receive or obtain the use of the income or capital of the trust while the settlor

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in
About Norton Rose Fulbright Canada LLP

Norton Rose Fulbright is a global law firm. We provide the world's preeminent corporations and financial institutions with a full business law service. We have 3800 lawyers and other legal staff based in more than 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.

Recognized for our industry focus, we are strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare.

Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.

For more information about Norton Rose Fulbright, see nortonrosefulbright.com/legal-notices.

Law around the world
nortonrosefulbright.com

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Before December 31: A Cross-Border Estate Planning Check-Up For Canadian Families

Canadian families with U.S. connections face unique estate planning challenges that require regular review. This comprehensive guide examines eight critical areas—from wills and powers of attorney to cross-border trusts and reporting obligations—that warrant attention before year-end, particularly when family circumstances, asset values, or residency status have changed.
CanadaFamily and Matrimonial
Altro LLP
Altro LLP
Article

Canada-US Estate Planning: A Complete Guide For Snowbirds And Cross-Border Families

Canadians who own US property, hold American investments, or have family members with US citizenship face a complex web of estate tax obligations spanning two countries. Without proper coordination, your heirs could face double taxation, frozen assets during lengthy Florida probate proceedings, or unexpected tax bills that consume a significant portion of their inheritance.
CanadaFamily and Matrimonial
Altro LLP
Altro LLP
Article

Ontario Probate: A Step-by-Step Guide For Executors (Including Estates With US Property)

Ontario probate requires court certification, estate administration tax of up to 1.5%, and careful navigation of cross-border rules when US property is involved. Executors face strict timelines, fiduciary duties, and potential personal liability, while proper planning through multiple wills and beneficiary designations can significantly reduce both costs and delays.
CanadaFamily and Matrimonial
Altro LLP
Altro LLP
Article

Estate Freeze Alert: Ontario Court Of Appeal Rules Trust Interest Is Not A Gift After Marriage

A family trust settled by a parent after a child’s marriage would normally be considered a “gift after marriage,” excluded from equalization under Ontario’s Family Law Act. In Lang-Newlands v. Newlands, 2026 ONCA 530 [Lang-Newlands], the Ontario Court of Appeal (the “Court”) held otherwise. The Court found that because the trust’s value derived entirely from shares the beneficiary already owned at the date of marriage, her interest in the trust was not a gift, and she now faces a substantial equalization payment.
CanadaFamily and Matrimonial
Miller Thomson
Miller Thomson
Article

Canadian Citizenship By Descent: Canada Expands Eligibility Under Bill C-3

Many people may be surprised and pleased to learn that there is a new path to becoming a Canadian citizen. The Government of Canada passed Bill C-3, An Act to Amend the Citizenship Act (2025), on December 15, 2025. Before this legislation came into effect, Canadian citizenship by descent was limited to the first generation born outside Canada. For example, Emily was born or naturalized in Canada, and she could pass her citizenship to her child, Duncan, born outside of Canada.
CanadaFamily and Matrimonial
O'Sullivan Estate Lawyers LLP
O'Sullivan Estate Lawyers LLP
Article

The Supreme Court Of Canada Recognizes A New Tort Of Intimate Partner Violence

The Supreme Court of Canada has established a groundbreaking new common law tort of Intimate Partner Violence, fundamentally changing how survivors can seek civil remedies for coercive and controlling behavior in intimate relationships. This landmark decision introduces a legal framework that recognizes patterns of abuse beyond traditional assault claims, focusing on the cumulative nature of coercive control that strips victims of their dignity, autonomy and equality. Courts across Canada are now beginning
CanadaFamily and Matrimonial
Thompson Dorfman Sweatman LLP
Thompson Dorfman Sweatman LLP
Article

The 21-year Rule: How To Prepare A Family Trust For This Crucial Milestone

A family trust is a tax and estate planning tool widely used by family businesses in Canada. Among other things, it can be used to establish an estate freeze, facilitate the gradual transfer of wealth to the next generation, maintain a degree of control over family assets and, in some cases, provide better assets protection. Historically, family trusts have also been used in a variety of income-splitting strategies.
CanadaFamily and Matrimonial
Miller Thomson
Miller Thomson