Two main categories of Trusts operate in Canada.
TESTAMENTARY TRUST - A testamentary trust is a trust or estate that is generally created on the day a person dies. The terms of the trust are established by the will or by court order in relation to the deceased individual's estate under provincial or territorial law.
Generally, this type of trust does not include a trust created by a person other than a deceased individual, or a trust created after November 12, 1981, if any property was contributed to it other than by a deceased individual as a consequence of the individual's death.
What is the purpose of a Testamantary Trust. Typically these are created by either a deceased individual through a will or by a Court for the benefit of a beneficiary who is incompetent to manage the assets placed in a trust. Incompetence can stem from under legal age, infirmity or lack of suffistication in managing financial affairs.
INTER VIVOS TRUST - An inter vivos trust is a trust that is not a testamentary trust. There are many different types of inter vivos trusts each with its own set of tax rules. Here are a few of the common ones.
Alter Ego trust
This is a trust created after 1999 by a settlor who was 65 years of age or older at the time the trust was created, for which the settlor is entitled to receive all the income that may arise during his or her lifetime, and is the only person who can receive, or get the use of, any income or capital of the trust during the settlor's lifetime. A trust will not be considered an alter ego trust if it so elects in its return for its first tax year.
As always these are general description and for general information ONLY, you need to seek professional advice to see how any action benefits or impact your situation.