Trust Monies
Trust Monies
Learning the basics of managing trusts and investments. Acquire new skills and knowledge.
Maximizing Indigenous Economic and Social Well-Being Across Canada
NATOA established a Trust and Investment Basics level online training course for Trustees, in partnership with Lethbridge College in 2011. A second more extensive Trustee training course was launched in 2020. These courses sought to increase the knowledge and education for Indigenous Trustees who are holding or will hold these important positions within their own communities.
Learn basics of Trusts: Managing and Investing
What is a Trust? A trust is a legal arrangement where a person, or group of people, gives permission to designated people or companies (trustees), to manage or hold property and assets. Empowering them to make informed decisions on behalf of the people and communities they represent.
- The Beneficiaries (People who benefit from the Trust) are members of the First Nation, Metis Settlement, or Inuit Citizens defined by a formal registry.
- Trusts can be managed in several ways, from a Board of Trustees that are all Community Members, to the formal hiring of a Corporate Trustee from a Trust Company, or a combination of Community Members with a Corporate Trustee or an Administrative Trustee.
- The Corporate Trustee will professionally coordinate all activities concerning the administration of the investment of the Trust funds and report to the appropriate community leadership body.
The monies that fund these trusts are managed by Indigenous Services Canada (ISC) and distributed to First Nations and their members. The monies are distributed when a Land Claim Settlement, Impact Benefit Agreement, or any kind of community settlement of funds occurs. The funds are placed in a formal Trust to be held for the long-term benefit of the beneficiaries.
Communities usually operate as an Operating Trust where the Trustees are responsible for the invested funds, reporting to the Beneficiaries, and the determination of how the Revenue Funds are distributed and utilized within the Community.
- Operating Trusts create an organization that may include a General Manager or Trust Administrator that will coordinate the activities of the Trustees, carry out the directions of the Trustees and provide the administrative support for the organization. These duties include coordinating with the Investment Management, Advisory, Legal, and Accounting professional service providers that a Trust fund will deal with on a day-to-day basis. The General Manager or Trust Administrator may also interact with the Community Members as well.
- A Financial Trust is a situation where a Corporate Trustee has been retained and is responsible for the administration of the Trust funds and reporting but pays out the Annual Revenue to the First Nation or Community Leadership which will then be responsible for how those funds will be distributed for the benefit of the beneficiaries.
Benefits of becoming a Trustee or Trust Manager:
- Hold a lot of responsibility
- Learn about investing
- Develop skills pertaining to money management
- Knowledge about trusts
- Develop privilege with this title
How can you learn more about becoming a Trustee or Trust Manger for your community?
Our online course is designed to explore and build knowledge about Trusts and Investments for Indigenous people by Indigenous people. NATOA established a Trust and Investment Basics level online training course for Trustees.
These courses seek to increase the knowledge and education of Indigenous Trustees who are holding or will hold these important positions within their own communities.
There are two ways that monies are paid out to members of the First Nation, Metis Settlement, or Inuit Citizens defined by a formal registry.
1) Individual Monies: These are held and managed by ISC on behalf of Status Indian minors. Monies to Minors are usually paid to the minor when they have reached the age of Majority in the province they live, at which time the account balance is paid to them and then the account is closed.
a) Dependent adults (based on a provincial designation as such), Where a First Nation member, who ordinarily lives on reserve, is found to be incapable of handling their own financial affairs, ISC may establish an account for the individual and manage their day-to-day income and expenditures.
b) Estates of certain deceased individuals. Where a First Nation member, who ordinarily lives on reserve, dies, the Minister has exclusive jurisdiction over the estate. ISC may appoint an outside administrator (provincial officer, family member, etc.) or, as a last resort, appoint an ISC employee to administer the estate. These monies are administered and accessed through the Estates Program according to sections 42 to 52 of the Indian Act.
2) Band Monies: Band monies are managed by Indigenous Service Canada (ISC’S) on behalf of First Nations and indicate ISC is responsible for the management and disbursement of these monies. Band Monies include Capital Monies and Revenue Monies.
Examples of Capital money include proceeds from:
- oil and gas revenues
- sale of a First Nation’s reserve lands
- sale of timber without a reforestation program
- sale of gravel
Examples of Revenue money include proceeds from:
- the sale of renewable resources
- reserve land activities such as leases, permits, and rights-of-way
- fines
- interest earned on capital and revenue money held by ISC