It may seem like the benefits of planning a Family Trust, or perhaps the value of your existing Family Trust, have been completely cancelled. But that isn’t the case. One tax benefit of using a Family Trust is still very much available, and in the right situation it can provide the biggest tax win of all.

A recent statement from CRA regarding “phantom income” shows how important it is to cover seemingly obscure tax issues when drafting a Family Trust. Including this Trust provision could save you a great deal of tax when the “21-year rule” takes effect.