Manitoba Estate Law
Trusts And Estates Lawyers in Winnipeg
Your Family matters
Welcome to the Visionary Law Corporation, your trusted partner in trusts and estates law in Manitoba. We understand that navigating the complexities of estate planning, probate, and trust administration can be overwhelming. Our dedicated team of experienced lawyers specializes in this intricate area of law, providing comprehensive and personalized solutions to protect your assets and ensure your legacy is preserved.
Whether you need assistance in creating a trust, drafting a will, administering an estate, or resolving disputes, we are here to guide you every step of the way. With our deep knowledge of Manitoba laws and a compassionate approach, we are committed to delivering excellent legal counsel and peace of mind.
Request a consultation with us today to discuss your needs and let us help you secure your family’s future.
Why Do You Need a Trust?
A trust provides additional flexibility that can supplement or even replace wills. One of its main distinguishing factors is its ability to reduce the tax burden that an estate is subject to before being inherited by its heirs.
Additionally, a trust provides greater flexibility in stipulating how the inheritance can be used by its heirs, and the timing of distributions of that inheritance. For example, trusts can be used to ensure that a child with special needs is taken care of with regular distributions from the trust that are managed by a trustee.
There are two main types of trusts: living trusts and testamentary trusts.
Like its name suggests, a living trust is created during the life of the grantor. However, it can be structured to continue after the death of the grantor.
A revocable living trust can be used to avoid the time and cost of the probate process and can be revoked by the grantor at any time.
An irrevocable trust leaves the grantor’s control upon creation of the trust and cannot be changed by the grantor after creation. However, irrevocable trusts usually have more tax advantages than revocable trusts.
Testamentary trusts are created after the death of the grantor. Unlike living trusts, a testamentary trust does not avoid the probate process.
What are the benefits of a trust in Manitoba?
Creating a trust in Manitoba can offer several benefits in estate planning. Some key advantages include:
- Probate Avoidance: One significant benefit of a trust is the potential to avoid probate, which is the legal process of validating a will and administering the estate. Assets held in a properly established trust may bypass probate, saving time, expenses, and maintaining privacy for the beneficiaries.
- Estate Tax Planning: Trusts can be used to minimize estate taxes. By transferring assets into specific types of trusts, such as testamentary trusts or spousal/common-law partner trusts, it may be possible to take advantage of tax-saving strategies, potentially reducing the overall tax burden on the estate.
- Asset Protection: Trusts can provide a level of asset protection. Placing assets in a trust can safeguard them from creditors, lawsuits, or potential claims, ensuring their preservation for the intended beneficiaries. Trusts can be particularly valuable in protecting assets for future generations or individuals with special needs.
- Control and Flexibility: Establishing a trust allows the settlor (the person creating the trust) to maintain control over the assets even after transferring them to the trust. Through careful drafting, the settlor can specify how the assets should be managed, distributed, and used for the beneficiaries, ensuring their wishes are upheld.
- Privacy and Confidentiality: Unlike a will, which becomes a public document during probate, a trust offers greater privacy. Trusts are generally not filed with the court and do not become part of the public record, allowing for confidential management and distribution of assets.
It’s important to consult with an experienced estate planning lawyer in Manitoba to understand the specific benefits and limitations of trusts based on your unique circumstances. They can guide you through the intricacies of trust planning, ensuring compliance with provincial laws and helping you make informed decisions to achieve your estate planning goals.
How can a family trust help minimize estate taxes and protect family assets in Manitoba?
A family trust in Manitoba can minimize estate taxes and protect family assets through several key strategies. Firstly, transferring assets to the trust can remove them from the taxable estate, reducing the overall estate value subject to taxation upon the settlor’s death. Additionally, income splitting among family members within the trust allows for tax optimization, as income can be distributed to beneficiaries in lower tax brackets.
The trust can also provide capital gains tax deferral by holding appreciated assets, potentially resulting in tax advantages upon their sale. Lastly, a family trust offers asset protection by separating assets from personal ownership, safeguarding them against potential creditors or legal claims. Consult a Manitoba’s Visionary Law Corporation for personalized advice and to maximize the benefits of a family trust for your specific situation.
How to Create a Trust
A trust is created when the property owner, or grantor, transfers ownership of that property to a trustee, who can be either a person or an institution. The trustee then manages the property of the trust for the benefit of the beneficiaries of that trust, and is legally obligated to act in the best interests of the beneficiaries. The trustee is often compensated for managing the trust.
Request an Initial Consultation
Please complete the form below to request a family law consultation with Visionary Law. We will contact you as soon as possible to schedule an office visit. Information shared with our office in this form and during our consultation is and will remain private and confidential.