ACTING AS AGENT FOR A TRUSTEE “THE APPOINTMENT OF AN AGENT TO ACT FOR THE TRUSTEE WILL OFTEN PROVIDE A COMPLETE SOLUTION” Trusts are often designed to be intergenerational and, consequently, may continue for three or more generations. Not only does this give rise to a change of beneficiaries over time, but also the need for substitute Trustees. Not surprisingly, therefore, during the period of a Trust’s existence circumstances may change for an Original Trustee making it difficult or impossible for him or her to carry out all of the duties required of a Trustee. Similarly, by the time a substitute Trustee takes up his or her duties that Trustee’s circumstances may be such that he or she is unable or not willing to perform all of the functions required in the administration of a Trust. The issue giving rise to the inability or unwillingness may be temporary or permanent and it may encompass all of the Trustee’s functions or only some of them. In some cases it may be appropriate for a Trustee in these circumstances to renounce or resign as Trustee and permit the successors named in the Trust Deed to act in his or her stead or to have someone not named in the Trust Deed appointed the Estate Trustee either under the statutory provisions of the Trustee Act or by the Court. However, in most circumstances, such a drastic measure is not required; the appointment of an Agent to act for the Trustee will often provide a complete solution. WHEN WOULD YOU NEED AN AGENT? 1 Toronto Street Suite 800 Toronto ON M5C 2V6 At Legacy Private Trust we are proud to act as an Agent for a Trustee in all sorts of situations. Perhaps a Trustee is in a circumstance where he or she is unable to perform any of his or her duties during a period of time due to illness or a period where business or personal responsibilities are heavy. Perhaps a Trustee travels outside of Ontario for a protracted period of time each year. Perhaps a Trustee, chosen because of his or her background with the family and clearly the best person to exercise the Trustee’s discretions as set out in the Trust Deed, is uncomfortable with the myriad of administrative and accounting tasks that are part of a Trustee’s job. Or perhaps a Trustee simply finds the somewhat arcane trust accounting rules, so unlike the accounting rules with which business men and women are familiar, a challenge with which he or she would like some assistance. Whether we are asked to perform all, or most of, a Trustee’s functions during the whole period of the Trusteeship or only to perform specific tasks for a specific period of time, Legacy Private Trust has the expertise to fill the gap. ADMINISTRATION “WE ARE HAPPY TO RECOGNIZE THE CONTINUING ROLE OF THE TRUSTEE HIMSELF OR HERSELF AND OF THE OTHER PROFESSIONALS WHO MAY BE PART OF THE TEAM ASSISTING THE TRUSTEE” 1 Toronto Street Suite 800 Toronto ON M5C 2V6 Most people who are named as Trustees are called upon to perform the office only once during their lifetime. It should come as no surprise, therefore, that knowing what to do and when can be more than a little daunting. At Legacy Private Trust we are happy to help you through this process with as little or as much help from us as you desire. Even those professionals such as lawyers and accountants who are often asked to act as Trustees may find that, at a certain time in their careers, they would like to do a little less of the administrative and accounting work while retaining the responsibility for the execution of the trusts and discretions that they originally undertook. Just as Legacy Private Trust is happy to be flexible in the part of the administration of a Trust that it is to undertake, so too are we happy to recognize the continuing role of the Trustee himself or herself and of the other professionals who may be part of the team assisting the Trustee. In establishing a fee for the role we are to play we undertake to recognize the division of roles that may arise between ourselves and the actual Trustee. Each set of circumstances will be different and at Legacy Private Trust we are pleased to bring to bear a flexibility of approach that ensures that the solution offered is one that recognizes both the requirements of the beneficiaries of the Trust and those of the Trustee. Trusts that are created during the lifetime of the creator, usually by means of a Deed of Trust, are known as inter vivos trusts to distinguish them from trusts established by Wills which are known as testamentary trusts. While the distinction is important in a number of contexts, the administration of both types of trusts is similar. Where you are administering a trust or trusts under a Will and are considering appointing an agent to assist you, please refer to our companion paper, ACTING AS AN AGENT FOR AN EXECUTOR. 2