This article is intended to give a fundamental understanding of the most common types of trusts used in our industry. Note that the comments contained in these articles do not apply to Quebec trusts due to the diversity of the legal structure in Quebec. However, the article gives you a general guideline on tax issues related to trusts. Manulife and its representatives do not warrant the validity and completeness of this document, as well as the tax and legal consequences of the trust agreement and the attached type declarations. We advise you and/or your client to get advice on tax and legal matters. While the trustee receives legal title to the trust patrimony, the trustee owes the beneficiaries a number of fiduciary duties upon acceptance of the property. Among the main obligations are the duty of loyalty, the duty of prudence and the duty of impartiality.  Agents may be subject to a very high level of diligence in their transactions in order to enforce their conduct. In order to ensure that beneficiaries receive their maturity, directors are subject to a number of ancillary obligations in support of the core tasks, including openness and transparency obligations, as well as accounting, accounting and disclosure obligations.
In addition, an agent has an obligation to know, understand and comply with the terms of the trust and applicable law. The agent may be indemnified and reimbursed for expenses, but must also present all the profits of the fiduciary real estate. Please note that in the case of a trust or informal trust, with the exception of a child tax trust, we should not receive a Social Security Number (SIN) for the beneficiary of the trust, as all tax reports must be made on behalf of the trust. In the case of an informal child tax trust, the SIN of the beneficiary of the trust should be solicited and reported. The trust is widely regarded as the most innovative contribution of the English legal system.  [Verification required] Today, trusts play an important role in most common law systems and their success has led some civil courts to include trusts in their civil laws. In Curaçao, for example, the trust entered into force on 1 January 2012; However, the Civil Code of Curaçao only allows explicit trusts constituted by notarial deed.  France has recently added to its own law, with the guardianship modified in 2009, a similar device based on Roman law.  Unlike a trust, the Treuhand is a contractual relationship. Trusts are widely used internationally, particularly in countries within the English sphere of influence, and although most civil courts generally do not contain the concept of trust in their legal systems, they recognise the concept of the Hague Convention on the Law Applicable to Trusts and their recognition (sometimes only to the extent that they are parties).
The Hague Convention also regulates conflicts of trust. .