Document background
The Simple Trust Agreement is a fundamental legal instrument used in Canadian trust law to create and document trust arrangements. This document is typically employed when individuals or entities wish to transfer assets to be managed by trustees for the benefit of specific beneficiaries, whether for family wealth management, charitable purposes, or estate planning. The agreement must comply with both federal legislation, such as the Income Tax Act, and provincial trust laws, which vary by jurisdiction. It includes essential provisions regarding trust property administration, trustee duties, beneficiary rights, and distribution terms. The Simple Trust Agreement is particularly valuable for straightforward trust arrangements where the primary goal is to establish clear, unambiguous terms for trust management while maintaining flexibility for future circumstances. It serves as the primary reference document for trustees in carrying out their fiduciary duties and for beneficiaries in understanding their entitlements.
