You Created A Family Trust – Now What (Part 2)?

Family trusts can provide many benefits and are set up for various reasons. They can be effective vehicles for income splitting, estate planning or creditor protection. However, after spending the necessary time to set up the family trust you want and dealing with various advisers, many people soon forget about the trust terms and how the trust should be administered properly.

In a previous edition of Wealth and tax matters we discussed the various tax issues that should be remembered after creating a family trust.¹ This article focuses on the things you need to keep in mind after you have created a trust. Not operating the trust correctly or overstepping your powers under the trust can have adverse effects.