Trust Allocation Agreement

19 déc Trust Allocation Agreement

As mentioned above, a trust is treated as an individual for income tax purposes. The Trust is considered investment income and all income held in a trust (testamentary or inter vivo) is taxed at the maximum tax rate (a Graduated Rate Estate (GRE) and Qualified Disability Trust (QDT) are taxed at staggered rates).1 Trust Records: There are no specific legal requirements for the respective data sets that must be provided by the Treuhand. Nevertheless, administrators should keep accurate records to demonstrate that they have done their job properly. It is recommended that these books contain records of all discretionary decisions. The corresponding accounting documents for the trust should be kept in the usual manner and in accordance with ITA requirements. Roman law had a well-developed concept of fideicommissum (fideicommissum) with regard to « testamentary trusts », which were created by wills, but never developed the concept of inter vivo (living) trusts that apply while the creator lives. This was created by subsequent common law courts. The right of personal trust developed in England during the Crusades, in the 12th and 13th centuries. In medieval English fiduciary law, the settlor was known as the feoffor to uses, while the agent was known as Feoffee for its use, and the beneficiary was called that used or cetui as trust. The rating agency has also received a communication on this matter. The question arose as to whether tax returns for fiduciary accounts were necessary when the reference to paragraph 75, paragraph 2 of the Income Tax Act does not apply (i.e. in cases of irrevocable trust) and, moreover, whether it is necessary when there is only one beneficiary.

In document 98339995, the rating agency stated that if a trust exists, even in the case of an informal « In Trust For » account, a T-3 return should normally be submitted to the trust, regardless of whether or not question 75 (2) applies. In particular, the agent would be required to present a T-3 return each year during which the trust has transferred capital. This applies regardless of the number of beneficiaries of the trust. The beneficiary of our contract should not be confused with the beneficiary of the trust. The beneficiary under our contract would generally be the Trust, so that after the death of the annuitant, the funds are repaid to the Trust and distributed according to the terms of the trust.

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