All About Estates

Myths about Trusts

Perhaps you read the article which appeared in the National Post on September 14th “Debunking” some of the myths about Trusts.

As you will see in the article, Myth #5 addresses the perception that Trusts are expensive to set-up. I would go further to say that some people suggest Trusts are also expensive to maintain. This however, is the point I would like to debunk. Although the calculation of executor’s compensation using the generally accepted tariff is somewhat complex, based on today’s rates of interest and dividends, it amounts to less than 1% per annum, and, it can be tax-deductible. If you compare the time, responsibility and skill that must be deployed to administer a Trust and compare it to some other financial instruments, such as a mutual fund with MERs in the neighbouthood of 1% to 2%, this makes Trusts look like a bargain. Especially if you consider that some professional Trustees include the investment management as part of the deal.

About Paul Fensom
Scotiatrust offers a full range of estate, trust and philanthropic advisory services designed to meet a client’s personal objectives and designed to evolve across a variety of life stages and financial events. Email: