Thinking ahead through a trust

For many people, a trust is something only for the very wealthy, something that couldn't possibly help them reach their family's financial goals. But that's not really the case. We all make commitments during our lifetime that we want to see continued. A trust can provide the control needed to ensure that these commitments to the financial security of others last a very long time.

Key questions to answer:

• do you have a beneficiary with special needs or one who is too young to manage an inheritance?
• do you want to provide income to someone without forcing him or her to make all the investment decisions?
• do you have a cottage or family business?
• are you concerned about taxes?

If you've answered yes to any of these questions, a trust deserves careful consideration as you plan your estate.

A flexible, lasting solution

A trust can be one of the most effective and flexible ways to ensure property is managed according to your directions, or to transfer assets to your family or a charitable organization, both during and after your lifetime. And it doesn't have to be complicated.

If a trust is right for your needs, TD Private Client Group Estates and Trusts Specialists can provide you with professional advice on:

• the role of a trust within your overall financial plan
• the structure of your trust agreement
• a comprehensive, long-term strategy to protect and transfer your assets
• the ongoing management of your trust

As trusts can remain in existence for generations, TD Private Client Group Estates and Trusts Specialists work hard to build a close relationship with your family and other beneficiaries. In many cases, beneficiaries ask us to help them with their own personal financial affairs such as investments, tax and estate planning. The fact that we have remained trusted advisors to many families over many generations demonstrates our ability to act impartially, efficiently, and with understanding.

Professional administration is also vital to the long-term success of your trust. This includes:

• collection, reinvestment, and distribution of income capital;
• custody and safekeeping of assets;
• comprehensive reporting to beneficiaries;
• trust tax preparation and filing;
• maintenance of personal financial records.

If you wish, you may name a family member or other advisor as Co-Trustee in the management of your trust assets and we will consult with them about all major decisions.

Trusts for now and for the future

In most cases, one of the following two types of trusts will meet your needs - An inter vivos or "living" trust is arranged during your lifetime. The assets are then transferred to a trustee, such as TD Private Client Group Estates and Trusts, through The Canada Trust Company, that ensures that the terms of the trust are carried out and that the trust is professionally managed. An inter vivos trust often becomes the foundation of your estate plan.

A testamentary trust is set up under the provisions of your Will and can consolidate your estate plan for your heirs. Upon your death, the assets are retained in trust and administered according to the instructions given in your Will.

Both types of trust can help you achieve a number of important estate planning objectives, including –

• support for a beneficiary with special needs
• income to a loved one for life without the burden or responsibility of managing the estate's assets
• ongoing support to a favourite charity
• privacy - unlike a Will, a trust agreement can remain a private document between you and your trustee
• the education or support of a beneficiary such as a child or grandchild
• holding in trust a family member's share of your estate until the individual reaches an age you consider appropriate
• holding an important asset such as a cottage or family business

TD Private Client Group Estates and Trusts as your Trustee

As trustee, our responsibilities include managing the trust assets, providing administrative services throughout the lifetime of the trust, and being accountable to your beneficiaries.