{"id":19604,"date":"2026-07-05T11:30:00","date_gmt":"2026-07-05T15:30:00","guid":{"rendered":"https:\/\/ebconseilfisc.com\/mise-en-place-de-fiducie\/"},"modified":"2026-07-12T18:50:38","modified_gmt":"2026-07-12T22:50:38","slug":"trust-setup","status":"publish","type":"post","link":"https:\/\/www.impots-ici.com\/en\/trust-setup\/","title":{"rendered":"Optimize your taxes and protect your assets with a family trust and a holding company"},"content":{"rendered":"

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A family trust and a holding company are often presented as two tools that reduce tax and protect assets. In practice, they serve different functions. A trust organizes the ownership or allocation of rights between trustees and beneficiaries; a holding company generally owns shares, investments or cash outside the operating corporation.<\/span><\/p>\n

Combining them may support succession, a reorganization or wealth management, but only when the objectives, people and cash flows are defined. A structure added without a commercial reason mainly creates costs, filings and a risk of inconsistency.<\/span><\/p>\n

The distinct role of a family trust<\/span><\/h2>\n

A trust is not a corporation or a family bank account. Trustees hold and administer property under the trust deed and their duties. Beneficiaries may receive income or capital when the deed and the trustees\u2019 decisions permit it.<\/span><\/p>\n

In a business context, a trust may hold growth shares, facilitate succession or provide flexibility among beneficiaries. Attribution rules, tax on split income, reporting obligations and the periodic deemed disposition must nevertheless be incorporated into the plan from the outset.<\/span><\/p>\n

What a holding company can actually accomplish<\/span><\/h2>\n

A holding company may receive certain dividends from an operating corporation, hold investments or finance other projects. It can separate some assets from daily operations, subject to guarantees, agreements and rules that may still connect the corporations.<\/span><\/p>\n

It does not make corporate money personal or tax-free. Amounts used by a shareholder must be paid and documented properly. Investment income, corporate association and intercompany transactions may change the expected result.<\/span><\/p>\n

Why the structures are sometimes combined<\/span><\/h2>\n

A trust may own growth shares of the operating corporation while a holding company holds other shares or receives funds not required for operations. In an estate freeze, the owner generally exchanges the current value for preferred shares and future growth is assigned to new shares.<\/span><\/p>\n

The combination may facilitate a transfer, prepare a sale or organize project financing. It must still respect the economic rights of each party, fair market value and the rules for related-party transfers. An organization chart does not replace the resolutions, agreements, valuations and accounting entries required.<\/span><\/p>\n