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Duties of a Trustee of a Henson Trust
The Trustee and Executor of the Will divides the property as set out in papragraph 4 (usually it is this number) of the will and transfers the share for the beneficiary of the Henson trust to the Trustee of the Henson Trust. Often this is one and the same person.
The Trustee of the Trust goes to the bank and opens an account either in "the Name of the Trustee in Trust" or in "the name of the beneficiary Trust account". The bank may require an opinion letter on the validity of the trust, this can be obtained from Mr. Pope.
The Trustee of the Trust must ensure that the beneficiary
never has more than a maximum of $5,000.00 in his or her account
in any one twelve month period. It is preferable to view the
maximum as $4,000.00 per year because should the beneficiary has
$4200.00 in their account and then receives the monthly cheque
of $959.00, then the beneficiary will be over the maximum of
$5,000.00.
The Trustee can pay for anything by paying the seller
directly, and this does not have to be reported to the Ministry.
If a large lump sum is given to the beneficiary of the
Trust, for example to pay debts and/or buy a car, etc., then
that sum must be used up in the month it is given to the
beneficiary. The cheque that the beneficiary receives for that
month will be called back at a rate of ?% until it is paid back.
The Trustee must keep good accounts and file an income tax
return for the Trust each year. Any taxes owing are paid out of
the Trust, not by the Trustee personally.
