The Trust Minute Reading – Multigenerational Planning

The Trust Minute Reading – Multigenerational Planning

Dessin Philippe - final

Philippe Bouchard

Director, Trust Administration and Wealth Engineering

philippe.bouchard@bluebridge.ca

When it comes to transferring wealth over several generations, it is impossible not to consider the trust as the preferred estate planning tool. Not only is its use in Anglo-Saxon countries common and widespread, its international recognition, notably in civil law countries, is increasing.

The trust lets its settlors stipulate that their assets will be protected upon their death and administered according to their wishes. The assets transferred to an inter vivos trust are not part of a deceased’s estate. Consequently, the purpose of an irrevocable trust is often the transmission of assets from one generation to another.

Certain jurisdictions limit the duration of a trust through rules that impose a specific deadline for the distribution of the trust’s assets to its beneficiaries (through so-called “rules against perpetuities”). The appropriate choice of jurisdiction is therefore very important at the time of constitution of the trust when the objective is an intergenerational transmission of the estate and the desire to avoid an overly short lifespan for the trust.

Likewise, when it comes to multigenerational planning, the choice of trustee becomes a key element. An institutional trustee with trust officers who are attentive to the needs and concerns of the settlor’s family can be an undeniable advantage compared to choosing an individual trustee. Not only can the family aspire to maintain the proximity and ease of access to the trustee, which is important to them, a trust company also offers the long-term security and sustainability to which the settlor aspires.

It is in this context and to address this desire of our clients that Blue Bridge Trust Company Inc. was established. Its trust officers and its estate and tax planning experts are ready to assist you in your goals and strategies for protecting your assets and their transmission over several generations. If you have any questions, do not hesitate to contact a member of the Blue Bridge team, who will be able to answer your questions.