A legal entity that holds assets on behalf of family members. Family trusts are sometimes used for estate planning and certain tax-deferred transfers (for example, qualifying spousal or alter-ego trusts) — but transfers to a trust generally occur at fair market value and trigger a disposition, and trusts face their own rules including a 21-year deemed disposition. Income-splitting is also restricted by the Tax on Split Income (TOSI) rules. Most lenders are reluctant to finance properties held in family trusts. Trust planning has significant legal and tax consequences — retain a trusts/estate lawyer and a CPA before setting one up.
Related Articles
- Estate Planning for Real Estate Investors: Canadian Guide
Estate planning for Canadian real estate investors. Trusts, estate freezes, holding companies, and corporate structures to protect and transfer your portfolio.
- Corporate Structure for Real Estate Investors: Canada
Structure investment properties for tax optimization, liability protection, and mortgage financeability. Holding companies, trusts, and partnership options.
- Intergenerational Wealth Transfer: Real Estate Legacy Guide
Succession planning for Canadian real estate families. Transition rental portfolios, management knowledge, and tax strategies to the next generation smoothly.
← Mortgage & Real Estate Glossary 2026 · Editorial standards