Transfer of Real Estate Between Trustees in Ontario

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When real estate is held in trust, there may come a time when the trustee needs to be changed—due to resignation, incapacity, death, or a planned transition. In Ontario, transferring real property from one trustee to another involves specific legal procedures to ensure title remains properly held in trust and the Land Titles records stay accurate.

When Does a Trustee Transfer Occur?

Trustee-to-trustee real estate transfers typically arise in the following situations:

  • A trustee resigns or is removed.
  • A successor trustee is appointed under the terms of a trust deed or court order.
  • The trust is being restructured.
  • The current trustee has passed away.

Regardless of the reason, the key principle is that the land must continue to be held in trust—just by a new legal owner.

What’s Required for the Transfer?

The process for transferring Ontario real estate from one trustee to another depends on how title was registered.

If the property is registered under the Land Titles system, the following are usually required:

  1. Transfer Document (Form 1 – Land Transfer Tax Act): This must be registered electronically via Teraview, showing the transfer from the outgoing trustee to the incoming one, and including the relevant trust language in the statements of trust.
  2. No Land Transfer Tax Payable: Trustee-to-trustee transfers are typically exempt from land transfer tax, as there is no beneficial ownership change. The exemption must be properly claimed by selecting the appropriate statements under the Land Transfer Tax Act and including explanatory language.
  3. Supporting Documents: These may include:
    • The trust deed or declaration of trust.
    • Resignation or death certificate of the outgoing trustee.
    • Trustee appointment documentation or court order (if applicable).
    • Solicitor’s statement or affidavit confirming the trust relationship and that beneficial ownership is unchanged.
  4. Registration by Lawyer or Authorized Agent: Only authorized Teraview users—typically lawyers or law clerks—can complete this process.

Practical Considerations

  • The name of the trust itself typically does not appear on title; rather, the individual trustee(s) hold title “in trust for” the named trust or beneficiaries.
  • If more than one trustee is involved, the new title must reflect all current trustees.
  • Any inconsistencies between the trust documents and title records can delay or complicate the transfer.

How Rabideau Law Can Help

At Rabideau Law, we regularly assist clients with real estate held in trust, including seamless trustee transitions. Whether it’s part of estate planning, corporate restructuring, or ongoing trust administration, our real estate and trust law experience ensures your transfer is completed efficiently, correctly, and with the necessary legal protections.


Example:
If John Smith, trustee of the “Smith Family Trust,” resigns and Jane Doe is appointed in his place, we prepare and register a Transfer from “John Smith, in trust” to “Jane Doe, in trust,” along with supporting documents confirming the change in trusteeship.

Thinking of transferring property between trustees?
Contact Rabideau Law to make sure your trust assets are properly protected and registered.