How important is the residence of the trust? | ScriptaLegal
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Frequently asked questions > Company > Trust > How important is the residence of the trust?

How important is the residence of the trust?

It is the residence of the majority of trustees that determines the residence of a trust. Therefore, if, during their term of office, several trustees moved outside of Canada or Quebec, this would change the residence of the trust and other laws would become applicable to it. Should such a situation arise, the trust may be considered a non-resident and will be subject to completely different taxation system. The Court case law also added the decision-making criterion to determine the residence of a trust. If the trustee or trustees who make the real decisions within the trust are resident outside the country, this may affect the residence of the trust, even if they do not represent the majority thereof.

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