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Nominee Trust Agreement Template for Canada

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Key Requirements PROMPT example:

Nominee Trust Agreement

"I need a Nominee Trust Agreement for a commercial real estate investment structure where three international investors will be beneficial owners, with a professional corporate trustee holding legal title to properties in Toronto, requiring quarterly reporting and specific investment restrictions."

Document background
The Nominee Trust Agreement is a sophisticated legal instrument used in Canadian jurisdictions to facilitate various business and property arrangements. It is particularly useful when there is a need to separate legal ownership from beneficial ownership of assets for legitimate business, tax, or privacy purposes. This type of agreement is commonly employed in real estate transactions, investment structures, and business arrangements where a nominee holds legal title to property while acting on behalf of the true beneficial owners. The document comprehensively outlines the trust structure, defines the roles and responsibilities of the nominee trustee(s), specifies the rights of beneficial owners, and establishes clear procedures for trust administration. A well-drafted Nominee Trust Agreement must comply with both federal and provincial trust laws, tax regulations, and relevant securities legislation, while providing adequate protection for all parties involved.
Suggested Sections

1. Parties: Identifies and provides full details of the Settlor, Nominee Trustee(s), and any other primary parties to the agreement

2. Background: Sets out the context and purpose of the nominee trust arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Declaration of Trust: Formally establishes the trust and specifies the trust property

5. Appointment of Nominee Trustee: Details the appointment of the nominee trustee(s) and their acceptance of the role

6. Powers and Duties of Trustee: Comprehensive listing of the nominee trustee's powers and responsibilities

7. Direction and Control: Specifies how the beneficial owner(s) may direct the nominee trustee

8. Trust Administration: Details the practical administration of the trust, including meetings, decisions, and record-keeping

9. Liability and Indemnification: Outlines the trustee's liability limitations and indemnification provisions

10. Compensation: Specifies fees and expenses payable to the nominee trustee

11. Amendment and Termination: Procedures for modifying the trust agreement and circumstances for termination

12. General Provisions: Standard clauses including governing law, notices, and severability

Optional Sections

1. Successor Trustee Provisions: Used when specific provisions for trustee succession are required, including appointment process and transition procedures

2. Co-Trustee Provisions: Included when multiple trustees are appointed, defining their relationship and decision-making process

3. Investment Guidelines: Required when the trust involves investment activities, specifying permitted investments and strategy

4. Tax Treatment: Detailed tax provisions when specific tax planning is part of the trust structure

5. Foreign Property Provisions: Included when trust property includes assets in other jurisdictions

6. Dispute Resolution: Specific procedures for resolving disputes when standard court proceedings are not preferred

7. Digital Assets: Provisions for handling digital assets when they form part of the trust property

Suggested Schedules

1. Schedule A - Trust Property: Detailed inventory and description of all assets held in trust

2. Schedule B - Beneficial Ownership: Details of beneficial ownership interests and any conditions or restrictions

3. Schedule C - Fee Schedule: Detailed breakdown of trustee compensation and expense reimbursement

4. Schedule D - Operating Procedures: Specific procedures for trust administration and decision-making

5. Appendix 1 - Forms: Standard forms for trust administration, including direction forms and transfer documents

6. Appendix 2 - Reporting Requirements: Templates and requirements for periodic reporting to beneficial owners

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


































Clauses






























Relevant Industries

Real Estate

Financial Services

Investment Management

Corporate Services

Private Wealth Management

Property Development

Securities and Investment

Professional Services

Family Business

Asset Management

Relevant Teams

Legal

Compliance

Trust Administration

Wealth Management

Real Estate

Corporate Services

Tax Advisory

Investment Management

Risk Management

Operations

Relevant Roles

Trust Officer

Legal Counsel

Corporate Trustee

Estate Planning Lawyer

Wealth Manager

Property Manager

Investment Advisor

Tax Specialist

Compliance Officer

Trust Administrator

Corporate Secretary

Financial Advisor

Real Estate Manager

Asset Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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