Trust Administration & Management
Listen, trusts aren't just for the ultra-wealthy anymore. They're practical tools that can save your family headaches, money, and time down the road. Let's figure out which one actually makes sense for you.
Listen, trusts aren't just for the ultra-wealthy anymore. They're practical tools that can save your family headaches, money, and time down the road. Let's figure out which one actually makes sense for you.
I've been doing this for about fifteen years now, and honestly? The trust that works for one family might be completely wrong for another. It's not about picking the fanciest option - it's about what'll actually protect your assets and make life easier for the people you care about.
Here's the deal with living trusts - you set them up while you're still kicking, and they can save your family a ton of hassle when you're gone. No probate court, no delays, no public records of what you owned. Just smooth sailing.
I had a client last year - lovely couple in their 60s - who thought they didn't need a living trust. "We'll just do a simple will," they said. Fast forward six months, and the husband has a stroke. Couldn't make decisions anymore. We scrambled to set up a trust through the courts, which cost three times what it would've upfront. Don't be those folks. Plan ahead while you can.
| Feature | Revocable Trust | Irrevocable Trust |
|---|---|---|
| Can you change it? | Yep, whenever you want | Nope, it's locked in |
| Asset protection | Not really - creditors can still come after stuff | Much better - assets are legally separate from you |
| Tax benefits | Minimal - you still report everything | Can be significant, especially for estate taxes |
| Complexity | Pretty straightforward | More complicated, needs careful planning |
| Best for | Most people who want flexibility | High net worth folks, specific tax strategies |
"My dad passed away last spring, and because he'd set up a living trust with Rune Shroud Chronos, we didn't spend months in probate court. Everything transferred smoothly. My siblings and I were dealing with grief, not legal nightmares. Worth every penny."
- Patricia M., Toronto
Setting up a living trust typically runs between $2,500-$5,000 depending on complexity. Yeah, it seems like a lot upfront, but probate can cost 3-7% of your estate value. Do the math.
Get a QuoteThese are the trusts that kick in after you're gone - they're created through your will. They're super useful if you've got minor kids, a loved one who isn't great with money, or you want to control how your assets get distributed over time.
I set up a testamentary trust for a single mom with three kids. She wanted them each to get a third of her estate, but not until they hit 25. In the meantime, the trustee can use funds for education, health needs, whatever's necessary. At 25, they get half. At 30, they get the rest. Keeps them from blowing it all at once, you know?
| Aspect | Pros | Cons |
|---|---|---|
| Setup Cost | Lower - included in will planning | Still goes through probate initially |
| Flexibility | Can be updated anytime before death | Once you're gone, terms are locked |
| Tax Planning | Excellent income splitting opportunities | Requires annual tax filings |
| Management | Trustee handles everything per your instructions | Choosing the right trustee is critical |
Testamentary trusts don't spring into action immediately. After someone passes, the will goes through probate first (usually 6-12 months in Ontario), then the trust gets funded. Plan accordingly.
Family trusts are workhorses for wealth preservation and tax planning. I'll level with you - they're not for everyone. But if you've got a family business, rental properties, or significant investments, they can be game-changers for keeping wealth in the family across generations.
Got a client who runs a manufacturing business worth about $8 million. We set up a family trust five years ago. He's frozen his shares at the value back then, and all the growth since goes to his three adult kids through the trust. When he eventually sells or retires, the family will save hundreds of thousands in taxes. Plus, if one kid gets divorced, their spouse can't touch the trust assets. Smart planning pays off.
| Category | Personal Ownership | Family Trust |
|---|---|---|
| Tax flexibility | Limited - you pay at your rate | High - distribute to family in lower brackets |
| Asset protection | Vulnerable to personal liabilities | Strong protection from creditors |
| Estate planning | Full probate fees on everything | Trust assets bypass probate |
| Setup & maintenance | Simple and cheap | Higher costs, annual tax returns required |
| Control | Total personal control | Shared among trustees per trust terms |
Note: The "right" choice depends entirely on your situation. Assets under $500K? Probably not worth the family trust complexity. Multi-million dollar portfolio? Let's talk.
Family trusts make sense when:
Otherwise? Might be overkill. I'll tell you straight if simpler options work better.
Setup: $4,000-$8,000
Annual admin: $1,500-$3,000
Tax filing: $800-$1,500/year
Sounds like a lot? Compare it to the tax savings and asset protection you'll get. Often pays for itself in 2-3 years.
Schedule ConsultationThis one's close to my heart. If you've got a loved one with disabilities, a Henson Trust can be a lifeline. It lets you provide for them without screwing up their government benefits like ODSP. The trust owns the assets, not them, so they still qualify for essential support programs.
I worked with a couple whose son has severe autism. They were terrified about what would happen after they're gone. We set up a Henson Trust with enough funds to supplement his ODSP for life. His younger sister is trustee. Now they can pay for his music therapy, his annual trip to see his favorite band, better living arrangements - stuff that makes life worth living, not just surviving. The parents actually sleep at night now.
The beauty of a Henson Trust is flexibility. The trustee can use funds for pretty much anything that improves quality of life:
This is huge. The trustee makes all the calls about distributions. You need someone who:
Can't find the right family member? We can discuss professional trustees or trust companies. They cost more but they're neutral and experienced.