Summary
Compared to an estate plan agreement, a spousal trust generally provides stronger protection for the children. The surviving spouse does not own the assets in the spousal trust and can't give them away to charity or lose them to a new husband. While stronger, some chinks remain in the armour it provides.
The second type of claim that [Sally] might use to attack the estate is under dependants' relief legislation. She will not succeed with that type of claim unless she is in financial need. If she has money of her own, or if Mr. [JONES] leaves her enough capital to get by, the claim will fail. If she is able to get over that hurdle however, this kind of claim can be a powerful tool for the stepmother. It not only overrides the will but also runs roughshod over any quit claim deed she might have signed. It allows her to change her mind.There are more exotic types of trusts he could use with names like "joint spousal trusts," "life insurance trusts," and "offshore asset protection trusts." These are the Porsches of the estate planning world. They are immune to attack under dependants' relief legislation in provinces like Manitoba, Alberta and British Columbia. There is an art and science to building those structures. There is also an art and science to attacking them. The lawyers have to know what they are doing.See the full content of this document
Extract
Spousal Trusts Offer Protection
John Poyser
MR. JONES passed away early in 2005 leaving everything to his wife, Sally, with the hope that she might leave some of the wealth at her death to his children, not just to hers. Each went into the marriage a...See the full content of this document
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