ADMN 4710H Chapter Notes - Chapter 17: Settlor, Tax Law, Legal Personality
30 Mar 2020
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What is a trust: per a legal agreement, a person ("settlor") (ex. A father or a mother) transfers property to trust, to have it managed by "trustee" (ex. Tax lawyer) for a fee, for the benefit of "beneficiary(s) (ex. Children or spouse: trust is not a legal person (corporation, for example, is a legal entity, trust is a taxable entity (partnership, for example, is not a taxable entity) Review question 17-1 what is a trust, and how does it differ from a partnership and corporation: corporation is a legal person (trust is not, trust is a taxable entity (partnership is not) Review question 17-3 and 17-4 what are the definitions of a testamentary trust and an inter-vivos trust, and what are the differences between a personal trust and a commercial trust: two types of trusts. Inter-vivos trust: created by settlor while the settlor is alive. Parents: commercial trust (inter-vivos, beneficiaries purchased trust interests (units, ex.
