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Trusts for Estate and Tax Planning - 2015 Edition


  • Life Agents (provincial requirements): 6.0 hours in BC, MB, ON, up to 5.0 hours in SK (subject to a maximum of 5 in non-insurance subjects), 6.0 hours in Alberta (life only, AIC # 50411)
  • CFP® certificants: This course qualifies for 6.0 FPSC-approved CE credits in the Financial Planning category.

FORMAT: Course Notes in PDF format (84 pages - print them or read them online). You must pass an online Course Quiz to obtain CE credits. Best viewed on PC/MAC full screen. May not be compatible with all mobile devices (smartphones, tablets).

COURSE DESCRIPTION: This Course was significantly updated in 2015 to reflect the important changes to trust taxation that come into effect for 2016. The Course focuses on trusts used in estate and tax planning, from the viewpoint of advisors, as well executors who may encounter trusts when carrying out their duties. After completing this course, you should be able to:

• describe what is needed to create a trust

• explain the types of trusts (e.g., testamentary, inter vivos, bare, spousal, alter ego, and Henson trusts)

• explain the types of beneficial interests in a trust (e.g., income vs. capital, life vs. remainder, vested vs. contingent) and the implications for income and asset distribution

• understand the duties and obligations of a trustee

• explain how the trustee can distribute assets (e.g., acting with an even hand, discretionary distributions, allocations on a per capita or per stirpes basis)

• understand the laws that may restrict trust operation (e.g., the 21-year rule, the rule against accumulation, and the rule against perpetuity)

• describe what is needed to wind up a trust, and understand what factors can force a trust to wind up (e.g., the rule against perpetuities, Saunders v. Vautier)

• explain the taxation of capital entering or leaving the trust, and income retained by the trust or distributed to the beneficiaries

• describe the tax planning opportunities provided by trusts (e.g., income splitting, preferred beneficiary election, charitable remainder trusts, estate freezes, multiplying the capital gains exemption)

• explain the economics of trusts and identify situations in which trusts may be financially viable.


NOTE: You have one year from time of purchase to complete this course.

AUTHOR: Roxanne Eszes, CFP®

PUBLISHED: July 2015

FPSC and FPSC CE Credit logo are registered trademarks of the Financial Planning Standards Council

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