Although there are many types of trusts, each of them fits into one or more of the following categories: to prove the existence of an informal trust, the agent, the settlor and the beneficiary of the trust must be clearly identified on the application. The trust property is already identified in the application. The second case, Blum v. the Queen, was decided in September 1998 by the Canadian Tax Court if the profits and income of shares acquired by a grandfather with confidence for his grandchildren were to be charged to him. Mr. Blum sold a few units in 1987 and 1988. Although the shares were issued in his name “in confidence” for his grandchildren, the rating agency included Mr. Blum`s capital gains and shares for the two years in question. Mr. Blum appealed to the Canadian Tax Tribunal and argued that, although the funds do not interfere with the trust`s official documents, the funds were not used personally by him, but held the shares and proceeds of the sale for the fiduciary grandchildren.
The Court held that this was a definitively established trust and that the benefits and interest were therefore not attributable to Mr. Blum. An owner who trusts the property converts part of his or her set of rights to the trustee, which separates legal ownership and control of the property from his property and benefits. This can be done for tax reasons or for the control of the property and its benefits if the settlor is absent, disabled or deceased. Will trusts can be created in wills that define how money and property are treated for children or other beneficiaries. The main part of the document defines the main purpose of the trust, including a complete description of the trust`s assets, terms and conditions and the situations in which the trust is terminated. There is also information on an agent`s powers and responsibilities and compensation provisions. In addition, in document 9830997, the department found that the existence of a trust account does not, in itself, lead to effective trust. The three certainties have yet to be in place.