Working with Trustees

📘 What Is a Trustee?

A trustee is an individual or corporation legally appointed to hold and manage assets — including real estate — on behalf of another person (the beneficiary or represented adult).

A trustee is appointed through either:

• A trust agreement, or

• A court order under the Adult Guardianship and Trusteeship Act (AGTA)
  
  

🔎 When Trustees Are Appointed

Trustees are commonly appointed when:

• An individual is mentally or physically incapable of managing their own affairs

• A person is under guardianship or trusteeship order

• A trustee is assigned in bankruptcy or estate litigation
  
  

🧑‍⚖️ Types of Trustees

• A private individual (18+)

• A trust company

• The Public Trustee of Alberta

Trustees do not need to reside in Alberta or Canada, but must act only within the authority granted in the trust agreement or court order.

✅ Agent Responsibilities – Step-by-Step

When working with a trustee:

1. Ask upfront:

“Are you the registered owner, or are you acting on behalf of someone else under legal authority?”

2. Request and review documentation

• Acceptable documents include:

  • Trust agreement

  • Court Order under AGTA

  • Legal appointment from bankruptcy or litigation process
    
    

• Ensure the document:

  • Names the trustee

  • Is current and properly executed

  • Clearly allows real estate decisions or sale
    
    

3. Pull title and confirm trustee is registered

• The trustee’s name must appear on title before listing or selling

• Look for:

  • Caveats

  • Restrictions

  • Court-registered orders limiting authority
    
    

4. Check for restrictions on power

Some court appointments limit or condition the trustee’s right to sell or mortgage the property. You must verify that the trustee:

• Has authority to dispose of the property

• Has no active restrictions requiring additional court approval
  
  

5. Use correct naming on the contract

✅ Example:
“Jane Smith, as Trustee for John Smith under Court Order dated June 1, 2024”

❌ Do not list:
“John Smith” or “The Estate of John Smith”

6. File all documentation in the brokerage record

• Keep a copy of:
  
  

  • The court order or trust document

  • Title confirming trustee is registered

  • FINTRAC compliance records (see below)
    
    

🔐 Why This Matters

• A trustee without proper authority cannot sell

• Land Titles will not transfer ownership unless the trustee is registered and authorized

• If a trustee’s authority is unclear, the contract may be unenforceable
  
  

✅ Verifying legal authority protects all parties and helps avoid failed deals, legal action, or risk to your license

🧾 FINTRAC Compliance – Trustees

IMPORTANT: A trustee is considered your client for FINTRAC purposes — and they are acting on behalf of a third party.

When a trustee is involved, the following FINTRAC steps are required:

1. Identify your client

• Your client is the trustee — the person signing the documents
  
  

2. Complete a Third-Party Determination

• Ask: “Are you acting on behalf of someone else?”

• If yes (which it is in a trusteeship), complete the Third Party section
  
  

3. Gather information on the third party

• Full legal name of the represented adult or beneficiary

• Date of birth (if available)

• Address

• Nature of relationship
  
  

4. Retain documentation

• Keep a copy of:

  • The trust agreement or court order

  • ID verification of the trustee

  • Completed FINTRAC forms
    
    

Excerpt from Brokerage FINTRAC Policy:
“When dealing with a trustee, agents must verify and document the legal authority to act. The trustee is the client, and the represented individual is a third party. Identification, third-party determination, and document retention are mandatory under FINTRAC.”

✅ Summary Checklist for Agents

• Ask who holds legal authority

• Request and review trust/court documents

• Confirm trustee is named on Certificate of Title

• Verify the document includes permission to sell

• Use correct seller name in contracts

• Complete FINTRAC ID + Third-Party Determination

• File all records in the brokerage file

👥 Trustees vs Executors – Key Differences

🔹 Executors:

• Appointed by a Will or by the court (via Grant of Probate)

• Act on behalf of a deceased person

• Require a Grant of Probate to sell real estate

• Must be registered on title before listing or selling

• Are your client for FINTRAC, with no third party (the deceased is not considered a third party)
  
  

🔹 Trustees:

• Appointed by a trust agreement or a court order (e.g., under the Adult Guardianship and Trusteeship Act)

• Act on behalf of a living individual (represented adult or beneficiary)

• Require a valid legal document granting them authority

• Must be registered on title before listing or selling

• Are your client for FINTRAC, but they are acting on behalf of a third party — so you must complete a Third Party Determination

🧑‍⚖️ Who Can Be a Trustee? (With Examples)

A trustee can be:

✅ An Individual (18 or older)

• Often a family member, friend, or professional hired by the represented adult or appointed by the court
  
  

• Example: John’s adult daughter is appointed trustee to manage his financial affairs after a dementia diagnosis
  
  

✅ A Trust Company

• Many financial institutions offer trustee services for individuals, families, or businesses
  
  

• Example: RBC Royal Trust, CIBC Trust, or TD Wealth may be named as trustee in a family trust or high-net-worth estate planning arrangement
  
  

✅ The Public Trustee

• Appointed by the Government of Alberta to act when no suitable private trustee is available
  
  

• Often involved when:
  
  

  • There are no family members available or capable
    
    

  • There’s a minor child or vulnerable adult who needs protection
    
    

  • The trustee must be seen as impartial or independent
    
    

✅ A Corporate Trustee

• A company (not a bank) may be named as a trustee in complex business, bankruptcy, or litigation scenarios
  
  

• Example: A court appoints a corporate law firm as trustee to sell a property under litigation involving a family dispute

🎓 Tip for New Agents

“Always verify who is legally authorized to act. Don’t guess.
If someone says they’re managing property for someone else — ask for the document and confirm their name is on title.”