B LAW422 Lecture Notes - Lecture 23: Settlor, Feoffee, Fiduciary
31 Mar 2016
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Definition of trust helps with taxes and liability: trust on faith (no proof) that it"ll be complied, a fiduciary duty highest duty, settler owns property & settles (transfer revenue canada shows up. If asset transferred = capital gain) property (title) to trustee. Trustee has legal ownership & title and are holding it in trust for a beneficiary who has an equitable right/title) Not contract can be created by contract: dougy (trust) 100% dougy (hold co) 100% dougy"s diner (op co) If dougy gets sued dougy no longer owns those shares trust owns shares. But dougy is the beneficiary of trust (decrease liability) Money flows up from dougy diner to hold to trust all as dividend- trust distributes (must every 21 years) money to beneficiary once in a while not dividend, not income = might be lower = tax advantage. Tax overview: two main types (capital and income)
