Personal trust

A personal trust can be a testamentary trust or a trust created during the lifetime of the settlor.

A personal trust is created gratuitously. Thus, where the trust is created in the settlor's lifetime, no consideration is payable by the beneficiary to the trust or a person who contributed to the trust, in order to acquire a beneficial interest. The settlor may acquire all the interests in the trust without the trust losing its status as a personal trust. The same is true for settlors that are related to each other.

For further information, refer to the Guide to Filing the Trust Income Tax Return (TP-646.G-V).