When it comes to estate planning, a bare trust agreement can provide significant benefits for both the grantor and beneficiary. In Alberta, a bare trust agreement is a legal document that allows assets to be transferred to a trustee who then holds them on behalf of the beneficiary. Here’s what you need to know about bare trust agreements in Alberta:
What is a Bare Trust Agreement in Alberta?
A bare trust agreement in Alberta is a legal document that transfers ownership of assets to a trustee who holds them on behalf of the beneficiary. The trustee has no discretion over the assets and must follow the directions of the grantor (the person who created the trust) regarding the distribution and management of the trust assets.
Who Can Benefit from a Bare Trust Agreement in Alberta?
Bare trust agreements in Alberta can benefit both the grantor and the beneficiary. For the grantor, the trust provides a way to transfer assets to the beneficiary without giving up control over them. For example, a parent might set up a bare trust for their child to hold money for education or a down payment on a house.
On the other hand, the beneficiary benefits from the trust because they have access to the assets without any restrictions. This means that they can use the assets as they see fit, except for situations where the grantor has specifically directed otherwise.
How to Set up a Bare Trust Agreement in Alberta?
To set up a bare trust agreement in Alberta, you’ll need to work with a lawyer who specializes in estate planning. The lawyer will be able to draft a trust agreement that meets your specific needs and goals. You’ll also need to select a trustee who will hold the assets on behalf of the beneficiary.
Once the trust agreement is drafted, it will need to be signed by the grantor and trustee. Then, the assets will need to be transferred to the trustee, who will hold them on behalf of the beneficiary. It’s essential to make sure that all legal requirements are followed to ensure that the trust is valid and legally binding.
Conclusion
A bare trust agreement in Alberta is a useful estate planning tool that can benefit both the grantor and the beneficiary. By transferring assets to a trustee, the grantor retains control over the assets while still providing the beneficiary with access to them. If you’re considering setting up a bare trust agreement in Alberta, it’s important to work with a lawyer who specializes in estate planning to ensure that everything is done correctly.