Uses of Trusts in Estate Planning - Stewart McKelvey
Uses of Trusts in Estate Planning - Stewart McKelvey
Uses of Trusts in Estate Planning - Stewart McKelvey
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Seed<strong>in</strong>g <strong>Trusts</strong><br />
• Another form <strong>of</strong> testamentary trust designed for<br />
beneficiaries who control owner-managed<br />
bus<strong>in</strong>esses or <strong>in</strong>vestment hold<strong>in</strong>g companies<br />
• Trust is established with a nom<strong>in</strong>al amount (i.e.<br />
$100) which the beneficiary/trustee can then use<br />
to subscribe for dividend entitled shares <strong>in</strong> the<br />
corporation as part <strong>of</strong> a corporate reorganization<br />
• The dividends can then be taxed <strong>in</strong> the trust at<br />
graduated rates or distributed to (and taxed <strong>in</strong><br />
the hands <strong>of</strong>) beneficiaries <strong>of</strong> the trust (i.e.<br />
spouse, children, etc.)
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