Bare Trust Agreement Template Ontario

The beneficial owner will use ITCs for GST for expenses related to its activities (e.g. B if the representative has incurred expenses as a representative). It is advisable to inform insurers of a simple fiduciary agreement and to make it clear to each agent and the true owner as named insureds, in order to avoid the prospect that insurers refuse to claim on the grounds that a simple agent does not have an “insurable interest” for the land covered by a policy. Should insurers` attention be drawn to a simple agent holding a registered title? In cases where an HST registration is required, the beneficial owner should register for HST, not just the trustee. The Canada Revenue Agency considers that the beneficial owner is involved in commercial activities related to lands held in trust by a simple agent. It is the beneficial owner who is required to take HST into consideration, to submit HST declarations and, in general, to fulfil the obligations imposed on registrants under the Excise Duty Act. Economic owners may have other assets that they wish to protect from the debts of fiduciary ownership. In some cases, holding a registered title in a simple trust can achieve this goal. As already mentioned, the trustee only owns the legal title in a simple trust and transfers this title upon request, in accordance with the specific instructions of the beneficial owner.

The mere agent would not be regarded as the exercise of a commercial activity concerning fiduciary ownership and, therefore, the trust would not be required to register under the law. The agency`s provisions in section 177 of the Act apply in situations where the agency relationship between the mere agent and the beneficial owner is not passed on to third parties. In a situation of trust, the person on the business activities to which the inputs relate is entitled to use JTIs. As mentioned above, in a simple situation of trust, the trust is not allowed to claim ITCs. Over the years, there has been a lot of discussion about the real role of an agent, perhaps even more so in terms of trust. There is still no unanimity within the legal community on the nature of the relationship between the trustee and the beneficial owner. Should lenders ensure that registered ownership of land is held by a mere agent? Means someone who provides the consideration for the creation of a trust, although the trust is created in the form of another. (Dictionary of Black Law) If the mere agent performs tasks in addition to the obligations set out in the trust deed, those obligations are deemed to be fulfilled by an agency contract or any other type of contractual agreement with the beneficial owner. It`s relatively easy to know who is listed as the legal owner of land in Ontario…