Seems unnecessary in Alberta where there is no inheritance tax, and very low probate fees.
More of a technique in the USA, or for people with high net worth. Perhaps your Dad heard about it from a US or Ontario source.
AI Overview
In Canada, living trusts, while offering some benefits, also come with disadvantages. These include higher initial setup costs and complexity compared to wills, ongoing administrative costs, and potential for tax issues. Additionally, asset protection might be limited, and the trust can be more difficult to navigate than a simple will.
https://freedomlaw.ca/blog/what-are-...e%20a%20lawyer.
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Disadvantages Of A Living Trust
There are costs involved with establishing a living trust. Trusts are more complicated to prepare than wills and generally require the help of a lawyer. It is also necessary to transfer the assets to the trust. Depending on the number and type of assets involved, this might be quite expensive.
A living trust also has ongoing costs to ensure compliance with laws. For example, the trustee will need to file a trust tax return annually on behalf of the trust. The trust will also usually pay the trustee for ongoing services involved in managing the trust.
The assets in a living trust are not readily accessible to the beneficiaries. While this might be seen as an advantage to the settlor, it can also cause inconvenience and difficulties for the beneficiaries. For example, it may be significantly more difficult for a beneficiary to obtain a loan using trust assets as collateral. When things become more difficult, they also become more expensive, especially if they require a significant time investment from the trustee or if the beneficiary needs to hire a lawyer.
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Updating a will should cost much less than setting up a living trust.