CanadaMust a trust company keep estate assets separate from its own business assets?
Yes, a trust company in Canada must keep estate assets separate from its own business assets when acting in a fiduciary capacity.
What the Law Says
The federal Trust and Loan Companies Act sets out strict rules to protect clients when trust companies act as fiduciaries — such as when administering estates.
When a trust company acts in a fiduciary capacity — for example, as executor or trustee of an estate — it has a legal duty to safeguard those assets and avoid any conflict of interest. One core protection is the requirement to keep those assets completely separate from the company’s own business assets.
This separation ensures that estate assets cannot be used to cover the trust company’s debts or losses, and remain available solely for the beneficiaries’ benefit.
Statutory TextA trust company that acts in a fiduciary capacity shall keep the assets held in that capacity separate from its own assets.
— Trust and Loan Companies Act, s. 58 — Fiduciary activities
What to Do
Confirm in writing that the trust company is acting in a fiduciary capacity (e.g., as estate trustee).
Review account statements and trust records to verify estate assets are held in distinct, labelled accounts.
Report any commingling of assets to the Office of the Superintendent of Financial Institutions (OSFI) or seek legal advice immediately.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.