A family trust is an essential tool for high-net-worth families, but it takes a little time and paperwork to get them up and running. The exact time taken to set up a trust differs depending on the specifics of the agreement and the pace at which the settlor and their advisors move. It can take anywhere between a couple of weeks and a few months. Let’s look at what factors influence the time it will take before your family trust is established.
Factors that affect the process
Family trusts are very easy to set up, so the only thing that will hold up the process is the time it takes you to submit the necessary documents. If you are working with a lawyer or financial advisor, the time they take to draw up and submit the documents will be another factor. Once the documents are finalized, you will also need to fund the trust to get it going. Ultimately, the speed at which you and your advisors move will determine the duration of the setup process.
Getting all the necessary documents in order
The primary document in a trust is the trust agreement, which needs to be drawn up by your tax lawyer and with the help of your financial advisors. It designates the grantor, trustees and beneficiaries and explains how the trust is managed and administered. In order to transfer assets from your name into the ownership of the trust, you will also need the relevant deeds, certificates, etc. All of these should be gathered together and presented to your tax lawyer before they start drawing up the agreement. This will ensure that the process moves as quickly as possible.
Nour Private Wealth (NPW) is a Canadian company with an elite team of wealth advisors servicing clients across seven provinces. We are committed to helping high net-worth families and individuals manage their wealth, grow their assets and plan their estates for a tax-efficient transfer. Contact us today for more information on setting up a family trust and what is required to get the process underway.