If the transfer is to be submitted electronically, the following documents must be provided to the department`s property tax and resources sector in order to obtain confirmation that the land transfer tax has been paid: a certain type of fiduciary agreement is designated as a simple trust fund. Unlike most trusts for which, subject to the terms of the trust, trustees are the last authority in determining the management and/or distribution of trust assets to beneficiaries, the trustees of a simple trust do not participate in the active management of the trust, but rely on the instructions given by the beneficiaries of the simple trust. By far the most common use of bare trusts is to retain a beneficiary`s right of ownership over real estate, whether residential or commercial. As with other trusts, the legal interest and favourable interest in the property is separated between the agent and the beneficiary. However, in the case of a simple trust, the agent is a mere agent of the beneficiary, who must act on the instruction of that party. With regard to income tax, the trust is ignored and the actual beneficiary is considered the actual owner of the property. that the agent (name determined) acquired the registered property on the date (fixed) under a purchase and sale contract or a transfer from either the economic beneficiary (name) or an agent (name). The exhibitions are accompanied by a photocopy of the purchase and sale agreement by which the agent took over the title (if any) and a copy of the promotion to the agent. While a trust can be created by verbal agreement or even by the action of the parties, the terms of a trust are almost always recorded in writing.
While the PTT exception continues to apply to bare trusts, the future usefulness and usefulness of these trusts in BC real estate transactions have recently been called into question. In concrete terms, a new PTT form was introduced on September 17, 2018, which requires that additional information be disclosed when a real estate transaction takes place through a trust, including a bare trust. In addition to disclosing the rightful owner of the property, the parties must also disclose certain information about any other party interested in the property, including a party with an economic interest. These new advertising obligations apply to both residential real estate transactions and commercial transactions. Recent statements by the BC government and changes to disclosure obligations in the transfer of property ownership have raised questions about whether a certain type of trust, the bare trust, will continue to be a useful tool for BC real estate transactions. A transfer of trusts may be submitted without prior authorization from the Ministry of Finance in the form of an electronic document for registration as an electronic document or may be tendered directly to the National Chancellor for processing and registration. If this newsletter does not fully respond to your particular situation, you refer to the law and related rules, go to our website at the ontario.ca/finance or contact us: An advantage of this agreement in BC allows the legal property to change owner, without attracting capital gains taxes, as long as the economic owner remains the same, because the transfer of the property is not a “provision” to income tax. Another widespread use of bare trusts was the prevention of the payment of property transfer tax (TTP). Since BC`s PTT structure attracts ptT only when the right is transferred to a new owner, the parties are able to avoid paying PTT entirely by applying cash fiduciary agreements to separate the legal and economic property reserve from the property.