Can a Joint Partner Trust Protect a Younger Spouse?
With an 11-year age difference between them, Peter* wanted to protect Joanne’s financial security.
While still alive, he wanted to maintain control of $4 million in investments and make the eventual administration of his estate easier. A Joint Partner Trust was the solution.
Written By Tiffany Woodfield, Financial Advisor, TEP®, CRPC®, CIM®
Summary of Key Points
- Peter held approximately $4 million in investments personally.
- He implemented a Joint Partner Trust that provided for both spouses during their lifetimes.
- The structure improved privacy and reduced probate exposure.
- One of his goals was to make the administration of the estate easier for his family.
How Peter Planned for His Wife’s Long-Term Financial Security
Peter is a Canadian resident, age 65, and is married to Joanne, who is 54.
Peter had built significant wealth and held approximately $4 million of non-registered investments in his own name. As part of his estate planning, Peter wanted to reduce probate exposure and create a smoother plan for Joanne if he became incapacitated or passed away.
After receiving legal and tax advice, Peter created a Joint Partner Trust.
Because he was 65 and a Canadian resident, he could generally transfer qualifying capital property into the trust on a tax-deferred basis, provided the trust met the required rules. The trust allowed Peter and Joanne to benefit from the assets during their lifetimes, while the remaining property would be distributed according to the trust terms after the later of their deaths.
For Peter, the goal was not to eliminate tax entirely.
The trust helped maintain control, provide for Joanne, improve privacy, and reduce the amount of property passing through his will. It could lower probate fees and make estate administration easier for his family.
However, the trust still required careful planning.
Peter needed to consider legal costs, annual filings, trustee responsibilities, and future tax consequences. While probate may be reduced with a Joint Partner Trust, tax is generally deferred rather than eliminated, often until the death of the surviving spouse or partner.
Why This Matters
Estate planning should account for what may happen during your lifetime as well as after your death.
For couples in Canada, especially those with an age difference or substantial individually owned assets, planning for the surviving spouse’s long-term needs is critical.
Key Tools
- Joint Partner Trust
- Tax-deferred transfer of qualifying capital property
- Trustee and successor trustee provisions
- Coordinated incapacity and estate planning
Get the Money Secrets Letter
Pop your email address in the form below to get my easy checklist and guide to manifesting and the guided audio meditation to help you get started.
You’ll also get one or two emails per month with the latest blog posts about abundance, wealth-building, manifesting, estate and legacy planning, generational wealth, and creating a fulfilling life.
Read More:
💎 What Is the First Thing You Should Do When You Inherit Money in Canada?
💎 Which Trust Is Best to Avoid Inheritance Tax in Canada?
💎 How Much Can You Inherit Tax-Free in Canada?
About the Author
TIFFANY WOODFIELD is a senior financial advisor, estate-planning expert, and dual-licensed portfolio manager based in Kelowna, British Columbia. She is the co-founder of SWAN Wealth Management, where she helps Canadian and cross-border families build lasting wealth, reduce tax risk, and create meaningful legacies.
As a TEP (Trust and Estate Practitioner) and portfolio manager, Tiffany works closely with successful professionals, business owners, and internationally mobile families who want to enjoy a more flexible, work-optional lifestyle. She combines deep technical expertise in wealth management with a strong focus on mindset, personal development, and purposeful decision-making.
Tiffany has been a contributor to Bloomberg TV and has been featured in major national and international publications, including The Globe and Mail and Barron’s, for her insights on retirement planning, cross-border wealth issues, and estate planning.
Professional designations:
- TEP® – Trust and Estate Practitioner
- CRPC® – Chartered Retirement Planning Counselor
- CIM® – Chartered Investment Manager
*Names have been changed to protect the identity and privacy of the individuals in this story. Please seek the advice of professionals before taking action. This case study is for educational purposes only.