Anyone with a significant patrimony should, as a preventive measure and while business is going well, consider taking the necessary measures to protect their patrimony and their family from any sudden hardship that may occur that might put the assets at risk. Creating a family trust is an effective way to protect certain assets from creditors, and thereby ensure the finacial security of the family because once the property is transferred to the trust, it is no longer a part of the settlor’s patrimony.

It should be noted that the legal content of this trust has been drafted according to the laws of the province of Quebec, Canada. Before using this document in a jurisdiction other than Quebec, the content must be reviewed by a lawyer practising in that jurisdiction to ensure that it is legally compliant.

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Agreement
0.01.02 Beneficiary
0.01.03 Capital
0.01.04 Capital Gain or Taxable Capital Gain
0.01.05 Child
0.01.06 Civil Code
0.01.07 Commodity Tax Law
0.01.08 Designated Trustees
0.01.09 First Trustee
0.01.10 Freeze
0.01.11 Income
0.01.12 Income Tax Law
0.01.13 Instructions
0.01.14 Instrument
0.01.15 Property
0.01.16 Spouse
0.01.17 Term
0.01.18 Trust
0.01.19 Trustees
0.02 Entire Agreement
0.03 Applicable Law
0.04 Non-Compliance
0.04.01 Severability
0.04.02 Substitute Provision
0.05 Miscellaneous
0.05.01 Gender and Number
0.05.02 Headings
1.00 CREATION OF THE TRUST
1.01 Allocation of Trust Patrimony
1.02 Transfer of Original Property
1.03 Irrevocable Gift
1.04 Acceptance by Trustees
1.05 Exclusive Administration
1.06 Name of Trust
1.07 Domicile of Trust
2.00 GOVERNANCE OF TRUST
2.01 Number
2.02 Trustee Meeting
2.02.01 Presence
2.02.02 Adopting Decisions
2.02.03 Two Trustees
2.03 First Trustee
2.03.01 Term of Mandate
2.03.02 Instructions
2.03.03 Substitute Trustee
a) Substitution Under Instructions
b) Substitution by Designated Trustees
c) Taking of Office
d) Powers
2.03.04 Discretionary Powers
a) Incapacity of First Trustee
b) Death of First Trustee
2.03.05 Return of First Trustee
2.04 Designated Trustees
2.04.01 Term of Mandate
2.04.02 Substitute Trustee
a) Instructions
b) Substitution by Designated Trustees
c) Taking of Office
2.05 Court Appointment
2.06 Spouse of Trustee
2.07 SETTLOR
2.08 Full Administration
2.08.01 Inequality
2.08.02 Final Decision
2.08.03 Support Obligation
2.09 Powers
2.09.01 Distribution of Income and Capital
a) Allocation of Income
b) Deemed Income
c) Remit Capital
d) Encroachment on Capital
2.09.02 Property
a) Acquisitions
b) Alienation
c) Improvement
d) Use
e) Abandonment
2.09.03 Division of Trust
2.09.04 Transfer of Property
2.09.05 Transfer of Trust Patrimony
a) Presence of First Trustee or Instructions
b) Absence of First Trustee or Instructions
2.09.06 Distribution of Property
2.09.07 Tax Election
2.09.08 Amortization
2.09.09 Income, Taxable Capital Gain and Dividend
2.09.10 Capital Gain Account
2.09.11 Payment
2.09.12 Income Taxes
2.09.13 Waiver
2.09.14 Constitution of a Corporation
2.09.15 Remit Conditional Shares
2.09.16 Exercising of Rights
2.09.17 Shareholder Agreement
2.09.18 Reorganization
2.09.19 Business
2.09.20 Security Interests
2.09.21 Suretyship
2.09.22 Lending
2.09.23 Borrowing
2.09.24 Release
2.09.25 Banking Business
2.09.26 Banking Delegation
2.09.27 Manage Investments
2.09.28 Insurance
2.09.29 Life Insurance
2.09.30 Professional Servces
2.09.31 Party to a Contract
2.09.32 Administration
2.09.33 Change of Domicile
2.09.34 Settlement and Legal Proceedings
2.09.35 Delegation of Powers
2.09.36 Liquidation
2.10 Obligations
2.10.01 Retaining Original Property
2.10.02 Holding Property
2.10.03 Reasonable Care and Diligence
2.10.04 Rendering of Account
a) Annual
b) End of Term
2.10.05 Shareholder Agreement
2.11 Apparent Mandate
2.12 Liability
2.12.01 Limitation
2.12.02 Discretion
2.12.03 Dissent
2.12.04 Performance Bond Exemption
2.13 Indemnification
2.14 Remuneration
2.14.01 First Trustee
2.14.02 Designated Trustees
2.15 Resignation of a Trustee
2.16 Removal of a Trustee
2.17 End of Duties
2.17.01 Natural Person
2.17.02 Legal Person
2.17.03 First Trustee
3.00 GOVERNANCE OF BENEFICIARIES
3.01 Eligibility Criteria
3.02 Designation
3.03 Waiver by Beneficiary
3.03.01 Written Waiver
3.03.02 Effect
3.04 Incompetent or Minor Beneficiary
3.04.01 Retaining Amounts Owing
3.04.02 Support
3.04.03 End of Incapacity
3.05 Bankrupt or Insolvent Beneficiary
3.06 Death of a Beneficiary
3.06.01 Distribution by Representation
3.06.02 Accretion
3.06.03 Distribution Impossible
4.00 MUTUAL REPRESENTATIONS AND WARRANTIES
4.01 Status
4.02 Authority
4.03 Binding Agreement
4.04 Canadian Resident
4.05 Nominee
5.00 SPECIFIC REPRESENTATIONS AND WARRANTIES
6.00 REMITTANCE OF CAPITAL
6.01 Death of First Trustee
6.02 Expiry of Term
7.00 LIMITATIONS AFFECTING PROPERTY
7.01 Private Property
7.02 Exempt from Distraint
7.03 Inalienable
7.04 Exceptions
8.00 SPECIAL PROVISIONS
8.01 Increase of Trust Patrimony
8.02 No Right of Reversion
8.03 Payment of Income or Capital to a Third Party
8.04 Support
8.05 Transaction at Fair Market Value
8.06 Shares and Interests
8.07 Beneficiary Trustee
8.08 Regulation 45-106
8.09 Consulting Professionals
8.10 Custody of Securities and Documents
8.10.01 First Trustee
8.10.02 Designated Trustees
8.10.03 Access
9.00 GENERAL PROVISIONS
9.01 Confidential Information
9.02 Notice
9.03 Dispute Resolution
9.04 Choice of Forum
9.05 Amendment
9.05.01 Minor Changes
9.05.02 Substantial Changes
9.05.03 Personal Trust
9.05.04 Seeking Relief From the Court
10.00 END OF TRUST
11.00 EFFECTIVE DATE
12.00 SCOPE