Non-Citizen Trusts

Canada and the world

This article will address some of the concerns particular to drafting a revocable trust for a client whose trust will benefit one or more non-citizen beneficiaries. The paper will consider the choice and removal of trustees, judicial supervision and applicable law, distribution provisions and the use of an "escape clause".

A Canadian Tax Lawyer's Updated Guide On Non

Furthermore, visual representations like the one above help us fully grasp the concept of Non-Citizen Trusts.

In other words, if a non -resident trust has a resident beneficiary or a resident contributor, even if the non -resident trust received no Canadian income, the trust will be required to file a T3 return for its 2024 and 2025 tax years.

Dates of birth (if a natural person) Countries of residence Taxpayer identification numbers Case Study: Moving with a Revocable Trust Consider the example of Patricia, a U.S. citizen who moved to Canada without dissolving her Revocable Living Trust . The trust holds her Austin, Texas condo and non -registered investments.

Understanding Non

Non - U.S. persons and non -residents of Canada who have beneficiaries with a nexus to these countries can consider establishing trust structures such as the Foreign Grantor Trust (for the U.S.) and the Granny Trust (for Canada) which would help with preserving family wealth for future generations.