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Legal Ease
Legal Ease, Lawyer
Category: Canada Law
Satisfied Customers: 143500
Experience:  I have been a lawyer since 1985 and have been a professional on this site for 12 years.
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Canada Trust Law I am a UK citizen, and live with my spouse

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Canada Trust LawI am a UK citizen, and live with my spouse (who works as a Private GP). Given the high liability claim rate in this profession, I am exploring asset protection solutions for the longer term (assuming a situation I'm not around).I'm thinking to setup a Canada Trust (with a linked trust bank account / trading account for investments), factoring the below:
- Terms: The proceeds to be used for living expenses of the beneficiary only
- I will be the settlor of this trust, and after my spouse will become the trustee as well as beneficiary after my deathQuestion: Will this trust provide my spouse protection from potential overseas / UK creditors (assuming a potential lawsuit in future - that is not covered by liability insurance)
Hello and Welcome to JustAnswer. My name is***** will be working on your question today and I am looking forward to our conversation.

I am very happy to answer your trust law question. I am sorry to hear of this difficult situation.

As a first step can I please have your first name?

Customer: replied 13 days ago.
Thanks for the note, Debra. My name is John
Customer: replied 13 days ago.
This is more of a proactive question, for asset protection in the long term. I exploring ways to ensure that my spouse can continue enjoying my assets, even beyond my time.

Hi John,

Is there something currently pending that you are concerned about or is this just for something that might happen in the future?

Customer: replied 13 days ago.
This is more of a proactive question, for asset protection in the long term. I exploring ways to ensure that my spouse can continue enjoying my assets, even beyond my time. We are a couple with no kids, and no immediate family. The goal to is ensure that my spouse is always secured, even if I'm not around.

Thank you for clarifying. I am happy to provide you with an answer now.

Thank you also for your patience.

Here is the answer to your query. Please do not hesitate to ask any follow up questions related to this response and know that I will respond as soon as I can.

In Canada trust is a separate legal entity so if you are personally liable the creators cannot look to the funds in the trust so long as you didn't transfer funds to defeat credit hours. As this is proactive this would not be considered to be a fraudulent convenience to defeat credit hours.

It would make more sense for you to consult with your tax accountants because it will be terrible tax consequences to setting up and managing the trust.

Does that help?

Please do not hesitate to reply back if you need any further clarification.

Customer: replied 13 days ago.
Thank you, ***** ***** is very helpful. I understand that taxation is another aspect to consider, but this certainly gives me further direction to explore.

You are very welcome.

Is there anything more I can help you with before I mark this question as complete?

I hope I was able to answer your question. If you would like to ask me another question in the future, you can add me as a favourite Expert. You'll have the option to do that on your "My Questions" page if you choose to rate our interaction or you can request me by name if you wish, again my name is Debra.

Thank you very much and best wishes.

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