Trusts, Explained - Everything You Need To Know About Trust Accounts in Canada For Beginners

A trust account in Canada can be a great financial tool for wealth. At a high level, a trust account is created when one person (the settlor), gives property to another person (the trustee) to manage on behalf of other people (the beneficiaries). There are a few different types of trusts accounts that you could have, too - like living trusts or estate trusts. In this video we're going to break down all of the different trust account options, what the are and why you might want to use it, and how you'd actually go about opening up a trust account. Oh, and we'll cover your money's protection, too! By the end you'll understand everything you need to know about trust accounts.

0:00 Trust accounts aren't just for 'rich people'
1:13 What is a trust account?
2:52 What are formal trust accounts?
4:14 What are informal aka in-trust accounts?
5:40 In-trust account tax advantages
6:44 Revocable vs irrevocable trusts
8:14 When should you use a trust account?
9:26 How CDIC protects your deposits

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Disclaimer - This content is for education and entertainment purposes only. Steph & Den do not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.

[stephandden]

Do you have any questions about CDIC protection of deposits held in Trust? Ask away! ⬇

[mankaransingh]

Setting aside the topic of trusts, I'm truly impressed with both of your presentation skills.

[sarah]

Although trust is not relevant to my personal financial situation it was still nice to learn about a totally new topic. Thank you 😊

[danellelussier]

This video really helped me wrap my head around the concept of trusts while doing my WME! the textbook is super bland, but this video helped so much! thank you guys! definitely subscribed for future videos! :)

[Swaharland]

Thanks guys, I really had no idea how it all works. Now I have more info.

[STOCKUPBUILDINGWEALTH]

Do you have a ‘step by step on how to open a trust account on the CRA website’ video?

[modenim]

This was so clearly explained it was actually helpful. Thank you so much

[SantiagoTorres-gjgs]

Great video. Was hoping to hear the effects of the 21yr rule and how it affects trusts and the fact that trusts are still considered a tax payer in Canada and pays at the highest personal marginal tax rate. Will there be a further video covering this as well as operating a business within a trust?
Thanks again for the video.

[jeffsimnett]

Great video. Question.. How are the assets inside an ITF account transferred after age of majority is reached? How is the account dissolved? Are they a deemed disposition? Do the shares get sold? Thanks!

[mikebeta]

Great vid guys,
Can you shed some light on common law pure trust?

[valdanowill]

How do I tansfer my home into the rust in canada without incurring a taxabele event?

[aamirchoudhry]

Very nice video! I learned a lot! Thank you.

[cdmlms]

Glad to have found this video! Thank you!

[arielchiu]

I am interested in setting up a trust.what do I do? Do I look for a lawyer or do you have any firms that you will recommend

[kishormans]

I would like to know it is good to form the trust account especially for my children for the properties in Ontario

[alwinhuynh]

thanks the video guys! den, would you consider doing a video on the cpa since you've completed yours? could be a good idea and might help others! (I'm currently looking into doing mine)

[NiteOwl]

Hi my daughter has two children and is on ODSP and RGI. The father of her children passed away over the holidays and she found out she was his beneficiary through his union. She doesn't want to lose her benefits. I heard about a Henson trust and wondering if I can open the trust and her inheritance can be put through that. She wants me to be her trustee. Is a Henson trust possible?

[renegadenstudios]

Do you have these videos in french for Quebecers please?

[optimusprimee]

Can the Trustee and Beneficiary be the same person?

[jamilabell]

Hi good afternoon. I would like to ask some questions about a trust