Photo of Dennis L. Nerland, QCBy Dennis L. Nerland, QCJuly 26 2017
Tax Law

Wealth Accumulation Trusts

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A wealth accumulation trust strategy can lower your taxes, produce steady guaranteed annual income, and help your favourite charity all at once. This is an extraordinary tax saving and income producing trust.

To make the wealth accumulation trust work, you give to your chosen charity, and establish an irrevocable living trust that ends your ownership of the donated assets. The terms of the trust provide that the trustee’s sale and reinvestment of those assets will produce an income for life for you. You will also receive a charitable tax receipt which will enhance your current after tax cash flow. The charity receives the capital at death.

The trust also acts as an ironclad protection against creditor attack. The only way a creditor can successfully attack the structure is to prove that the asset transfer was fraudulent. This is essentially impossible to do if the trust is created when your personal financial status is secure.

A wealth accumulation trust generates tax advantages, increases retirement income, and provides tax relief at death – all in the name of your personal philanthropic goals.

Invitation for Discussion:

If you would like to discuss this article in greater detail, or any other business law matter, please do not hesitate to contact one of the lawyers in the Tax group at Shea Nerland LLP.


Note that the foregoing is for general discussion purposes only and should not be construed as legal advice to any one person or company. If the issues discussed herein affect you or your company, you are encouraged to seek proper legal advice.

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