Irrevocable Discretionary Trust Deed | Canada
Set up an Irrevocable Discretionary Trust with this template trust deed for Canada.
- A discretionary trust is also called a blind trust because the beneficiary has no information about the assets in the trust or how the trust is administered.
- The settlor (the person setting up the trust) is the sole beneficiary of the trust and cannot act as a trustee.
- The division date will occur either upon the death of the beneficiary or on the 21-year anniversary of the establishment of the trust, whichever is earlier.
- The settlor reserves no powers or rights, and shall receive no benefits, income or capital of the trust fund in his/her capacity as settlor.
- This trust cannot be revoked.
- During the lifetime of the settlor, no income or capital of the trust shall be distributed to the settlor's spouse or a minor child of the settlor unless the distribution does not result in attribution of income or gain to the settlor under the Income Tax Act (Canada).
- This Irrevocable Discretionary Trust Deed is a good strategy to use when it's important that the beneficiary not be aware of what assets are held in the trust so as to avoid any claims of conflict of interest.
Last Updated: 07-February-2021