What assets can be placed in a living trust under Alberta law?
Executive summary
In Alberta a wide range of assets can be transferred into a living (inter vivos) trust — cash, investment portfolios, shares, real estate and business interests are commonly used — but each transfer must be formalized (title changes, assignments) and the trust then carries separate tax and reporting obligations (Canada Revenue Agency) [1] [2]. Legal firms and accountants in Alberta emphasise that the trustee must manage assets according to the trust deed and that improperly drafted transfers or omission of paperwork can undermine the trust’s effect [3] [4].
1. What a “living trust” is and why assets must be transferred formally
Alberta practitioners describe a living trust (inter vivos or family trust) as an arrangement where the settlor assigns ownership of assets to a trustee to hold for beneficiaries; a trust comes into effect during the settlor’s lifetime and only becomes operational for specific property once those assets are formally transferred — for example by changing titles or assigning shares to the trust’s name [3] [1]. Firms stress the administrative step: “to make the trust effective, you need to transfer assets to it” and maintain records of those transfers [3] [1].
2. Typical asset classes placed in Alberta living trusts
Practices and guides repeatedly list the common items put into living/family trusts: cash and bank deposits, investment portfolios and listed securities, corporate shares (family business shares), and real property including residences and cottages. Law firms and financial advisers point to these asset types as routine trust property because they can be titled or assigned into the trustee’s name [5] [1] [6].
3. Special-purpose trusts and “bare” vs discretionary holdings
Not all trusts operate the same way: bare trusts (simple holding arrangements where the trustee holds property on straightforward instructions) are used to simplify real-estate titles or hold property for minors, while discretionary or family trusts give trustees latitude over distributions and management — and that choice affects what assets are appropriate and how they’re administered [7] [5].
4. Tax and reporting consequences you can’t ignore
Once assets are in a trust the trust is treated as a separate taxpayer and may trigger T3 filing and other CRA reporting — recent government guidance and tax guides explain the trust-level filing requirements and evolving reporting rules for bare trusts and other trust types [2] [8]. Firms warn trustees they will need to manage ongoing tax compliance, keep records of transactions, and potentially register the trust with CRA when required [1] [3].
5. Practical frictions: titles, administration, and trustee choice
Alberta accountants and lawyers point out concrete friction points: real property and corporate shares need title or share-register changes; investments require monitoring and buy/sell decisions; trustees must keep beneficiaries informed and file tax returns. These operational burdens mean selecting a capable trustee and clear trust deed language is essential for protecting assets and achieving intended results [4] [9] [3].
6. When a trust might not accomplish what you expect
Sources caution that trusts are not a universal “fix.” Though living trusts can bypass probate for some assets and offer planning tools like estate freezes, they also create ongoing administrative cost and complexity — assets transferred to a trust are technically no longer owned by the settlor, which can have convenience and access implications for beneficiaries [9] [6] [1]. The guidance from practitioners is to match the trust type and asset list to the family/business objective.
7. What these sources do not settle — limits and litigation risk
Available sources document the kinds of assets typically placed in Alberta trusts and the administrative/tax rules, but they do not provide an exhaustive statutory list of prohibited assets nor detailed case law on creditor claims against trust assets in Alberta beyond general Trustee Act provisions; for statutory trustee powers and creditor-following rules, consult the Trustee Act and specific legal advice [10] [2]. Not found in current reporting: a single definitive government list stating “these precise assets may or may not be placed in an Alberta living trust.”
8. Bottom line for Alberta owners considering transfers
If you own cash, securities, shares or land, those assets can generally be placed in a living/family trust provided you complete formal transfer steps and accept the ongoing trustee duties and tax reporting obligations [1] [3]. Legal and accounting advisers in the cited sources uniformly recommend bespoke drafting of the trust deed, correct titling/assignment, and careful trustee selection to ensure the trust achieves your estate-planning goals [4] [9].