[calgarywinning]

Originally Posted by Fuzzy14

Inter Vivos Trusts (living trusts) have a lot of uses, and I implement them in my planning for clients frequently. However, they are by no means a "you've gotta have this" planning tool, and in some instances, are going to be more trouble than they're worth (initial planning and setup cost, annual maintenance, trustee fees if using a third-party trustee).

Since 2016, the feds have made significant changes to the taxation of trusts which took away a lot of the tax benefits of having one (mainly income splitting). However, some practitioners such as myself still view them as valuable planning tools; you just have to be able to look beyond tax and administration costs.

Whether it's a good idea really comes down to asset mix. Though we don't have probate fees of any magnitude in Alberta, many estates will end up having to sink some money in with lawyers to probate an estate, which can be significant depending on the value of the estate and the arrangement reached with that professional.

In some cases, folks will like the added privacy of a living trust, as they may allow you to bypass probate (remember, that most court proceedings are accessible to the public). In others, an individual who sees a dispute between beneficiaries on the horizon may wish to settle an inter vivos trust in order to head some of that risk off early (insofar as it is possible to do so). There is also the asset protection elements of trust planning which, for some folks, is critical.

Finally, folks with children who suffer from disabilities should explore trusts to ensure that they are missing out on some very important planning opportunities.

As Troutman outlined above, for the average person, a well drafted set of estate documents (Will, EPA and PD) with a qualified and licensed practitioner is more than adequate. In some cases, some clever probate planning can allow you to avoid the need to probate and the significant legal fees that can arise without needing to settle a trust.

For some reason this is the most epic post on CP. This advice is cheaper then when I signed up for Netflix for 9.99.