Bare Trustee Agreement Canada

Ownership of the property on behalf of a simple agent has important legal implications that should be taken into account in the decision on a property structure. This article provides a comprehensive overview of bare trusts, why they are used in the real estate context and a few issues to consider when using a naked trustee to hold a legal body. In addressing the CBT`s conclusion that the friend should be ignored as a mere fiduciary agent, the majority found that paragraph 254, paragraph 2, point b) was formulated in such a way that it did not matter that the friend had a legal interest only as an agent: the economic beneficiary was entitled to ITCs for GST at the expenses related to his business (z.B if the agent was an enforcement agent). As noted above, the agent of a simple trust holds only legal property and, at his request, transfers that title according to the specific instructions of the economic beneficiary. The mere agent would not be considered a commercial activity related to the trust and, therefore, the trust would not be required to register under the law. A simple trust can also be used to maintain real estate. A real estate company may retain a favourable interest in the land, while a company known as the nominee company has the right to do so. This usually happens because a nominating company offers anonymity because it is the only one in the Ontario Land Registry. Although anonymity is not sought, it authorizes a single right holder if there are several actual beneficiaries. Recipients may also be responsible for paying inheritance tax if the owner of the trust dies within seven years of the creation of the trust, because the cash trusts are treated by the tax authorities as potentially tax-exempt transfers. However, inheritance tax is not payable if Settlor survives these seven years. There is no tax nimlikation for the person who establishes a simple trust, because he renounces the legal right to the estate when he is transferred to the trust. However, a change in use may occur when the economic beneficiary of a real estate held in a single trust is engaged in tax-exempt activities and the cash trust has engaged in only commercial activity.

Registration/disinscribing generally has no influence on the use of the property held in a simple trust. is a term that is most often applied to it as a trust, the person who enjoys the trust, but not legal, who remains in the agent or personal representative.

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