The Interface Between Trust Law and Bankruptcy and Insolvency Regimes

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The interface between trust law and bankruptcy and insolvency law has generated both legislation and litigation. An aspect of this interface is the constitutional division of power: trust law falls within provincial legislative jurisdiction, whereas bankruptcy is a matter of federal legislation. This paper explores the conceptual factors that have been applied by courts when determining the appropriate accommodation between trust and insolvency law. This accommodation is addressed in the context of 6 categories of trusts: express and implied trusts, remedial trusts, resulting trusts, deemed statutory trusts, and trusts mandated by statute benefitting the Crown or others.

This paper is part of a collection presented at LESA’s The Constitution in the Insolvency Tool Box seminar held in Edmonton on June 9, 2016.

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