This post aims at summarizing the Supreme Court of Canada’s majority reasoning on Yared c. Karam, 2019 CSC 62.
Factual Background
In October 2011, Mr. K established a trust to protect their family’s assets for the benefits of his wife, Mrs. Y and their four children. The trustees are Mr. K and his mother. The initial beneficiaries were Mrs. Y and their four children. The trust conferred extensive powers of “Appointer” on Mr. K: 1) the power to appoint new beneficiaries, including himself; 2) the power to destitute any beneficiaries; and 3) the power to decide to which beneficiaries and in what proportion the revenues and capital of the trust would be paid.
In June 2012, the trust acquired a residence with funds transferred by the spouses. Then the family moved in the new residence. Mr. K stated that the house would serve both as the family residence and as an investment protected under the trust for the benefit of his children.
Continue reading “Family Patrimony and Trusts in Quebec: Whether Family Residence Acquired by Trust is Included in Family Patrimony – #50”