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If one of these criteria is lacking, there is no trust. Therefore, each document (whether it is a formal confidence document or a declaration of confidence) must indicate these essential parts: settlor, property, trustee and beneficiary. As noted above, there may be circumstances in which the agent acts in more than one z.B. function as an agent for certain activities and agent for other activities. In such cases, the declaration must be made on the basis of the role of agent or trustee, if any. Because information is often insufficient, informal trusts can create difficulties for both the agent and the trusted person in the event of a dispute over the management or distribution of the trust`s assets or income. Take, for example, a parent who establishes informal trust in their minor child. When the child turns 18, he or she will want to receive the money in person to spend it as he wishes. The parent disagrees and thinks he will waste the funds and, as an agent, decides not to distribute the funds.

Since there is no fiduciary document indicating anything else, the child would have the right, at the age of majority, to ask the Court of Justice to pay the funds to him. The existence of a trust is generally established in a trust document that contains the administrator`s instructions to fulfill the terms of the trust and defines the obligations and responsibilities of the agent. It is a separate fund associated with a life insurer for life insurance and is considered an inter vivo trust fund. The fund`s assets and income are considered the property and income of the trust, with the life insurer being considered an agent. A fiduciary company does not consider itself a corporation. Rather, it is a method of payment of property and a relationship between the agent and the beneficiary. However, a trust is considered an individual for income tax purposes. The rightful owner of the fiduciary property and the person responsible for the management of the trust in the interest of the beneficiary of the trust, in accordance with the trust agreement, the applicable trust law and the trust obligations law.

The agent may be the settlor or someone else (as explained later, but there may be adverse tax consequences if the settlor is the agent). Any number of agents may be chosen by Settlor and they must act unanimously, unless the trust agreement sets another. However, to ensure that there is no income allocation to Settlor, there should be an independent agent, such as a friend or business advisor. In accordance with regulatory and compliance rules, consultants should not place themselves in a position of real or perceived conflict of interest, which includes accepting an order as an agent for a client, except in accordance with company guidelines. The agent in a trusted situation can be a nominee company. On the other hand, if, in the fiduciary instrument, independent powers and responsibilities are vested in the agent with respect to wealth management, the agent is considered to be engaged in commercial activity with respect to real estate-related supplies. This too would be determined on the basis of the confidence document. In this case, a delivery by the agent as agent with respect to the trust will be an activity of the trust, and the billing of the GST would be made by the agent for the trust.

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