Estate Planning

Personally held assets are transferred into the Trust by the “Settlor” on a tax-deferred rollover basis. The Trust legally owns the assets. The Settlor retains full control and is the recipient of all income and capital during their lifetime.

Incapacity Planning

By naming an "Alternate Trustee" and specifying when they may act, an Alter Ego Trust can provide seamless management of Trust assets if the Settlor becomes mentally incapacitated. The Power of Attorney manages the assets outside the Trust.

Succession & Estate Planning

An Alter Ego Trust can serve as a Will substitute for assets held within the Trust. Typically, when someone passes away, their personally held assets are frozen until the Will is probated. Since the Trustee has legal title of the assets, probate is generally not required for these assets and can be distributed to the beneficiaries, according to the Trust document.

Key benefits:

  • Faster distribution of the Trust assets to the beneficiaries
  • Avoidance of probate on assets held within the Trust
  • Greater privacy, as Trust assets do not form part of the estate
  • Potentially reduces delays and administrative costs