Joint Partner Trust (ON)

Summary

This precedent is a standard-form deed made in accordance with the definition of a joint partner trust found in subsection 248(1) of the Income Tax Act, R.S.C. 1985, C.1 (5th Supp.). A joint partner trust enables the Settlor to put his or her assets into a trust for himself or herself and his or her spouse as the beneficiaries and to obtain certain income tax and estate administration tax advantages as a result. This precedent includes practical guidance, drafting notes, alternate clauses and optional clauses. A joint partner trust will avoid the deemed realization rules which otherwise apply on transfers to trusts. The 21-year deemed disposition rule will also not apply to a joint partner trust. Instead, there will be a deemed disposition of the trust assets on the death of the survivor of the Settlor and his or her spouse. In both an alter ego trust and joint partner trust, it is assumed that the trust will have contingent beneficiaries that will receive the income and/or the capital...