Estates Made Simple
Welcome to the “Estates Made Simple” Podcast, hosted by Gordon VanderLeek, a licensed lawyer specializing in wills, estates and trusts, and Jenna Carvalho, an estate and trust consultant with over 10 years experience helping families secure their assets and plan for the future. We are a bi-weekly podcast that discusses the complicated and often confusing world of estate administration. Our goal is to provide you with the insight, knowledge and resources to help you navigate this complex process. Every episode we bring our unique perspective to provide listeners with unbiased information and practical tips to ensure success and mitigate risk. Even if you are not an executor, there will be topics of interest as you consider planning options for your own estate. Join us for helpful tips and important information on navigating estate administration so you can achieve peace of mind as an executor or administrator.
Estates Made Simple
Understanding the 21-Year Rule in Trusts
Summary:
In this episode, our hosts dive into the intricacies of the 21-year rule in trust administration. Often misunderstood, the 21-year rule pertains to the deemed disposition of assets held within a trust, not the lifespan of the trust itself. The duo debunks common myths surrounding this rule, explains its implications for trustees, and offers valuable insights on how to navigate potential challenges, including the rule against perpetuities.
If you're a trustee or someone interested in estate planning, this episode is packed with information that will help you better understand these complex topics.
Key points:
- Clarification that the 21-year rule refers to the deemed disposition of assets, not the duration of the trust.
- Trustees can take steps to mitigate tax impacts by allocating gains to beneficiaries or planning distributions before the 21-year mark.
- In Alberta, the Perpetuities Act still upholds this rule, ensuring a balance between control and certainty in trust arrangements.
- Poorly drafted trusts may inadvertently violate the rule against perpetuities, leading to legal challenges.
- Courts may apply a "wait-and-see" approach to determine if the rule is breached and what remedies can be applied.
Hosts:
Jenna Carvalho
The smartest way to choose an executor.
Guardian Estate Company
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Gordon VanderLeek
Give your family a legacy of protection - Wills, Estates and Trusts.
VanderLeek Law
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