Important - Do you actually have a "Bare Trust" without realizing it?? Will you be affected by these New Tax rules??

Canada's New 'Bare Trust' Reporting Rules Are Here and you may need to know this.

One of the most significant changes is that the new reporting requirements will apply to so‑called “bare trusts”. A bare trust includes an arrangement where the trust can reasonably be considered to act as agent for its beneficiary(ies) with respect to all dealings in all the trust’s property. Prior to December 31, 2023, bare trusts were effectively excluded from the T3 return filing requirement; however, under the new rules, a bare trust will be required to file an annual T3 return unless an exemption applies. Indeed, under the expanded requirements, many other informal trust and agency relationships may now require an annual T3 return, such as an in-trust account set up by a parent for a child.

Bare trusts are often used in real estate transactions or as part of probate planning. For example, for estate planning or administrative purposes, legal title to a Canadian vacation property might be registered in the name of a nominee corporation or a trustee, even though the beneficial and economic ownership is held by another individual or entity. This bare trust relationship will now need to file a T3 return, provided the bare trust is resident, or deemed resident, in Canada.

Click here to watch a short video about this

***Please note that Raintree Financial Solutions and Drake Wellington Insurance Services Corporation are NOT affiliated with Parallel Wealth and this link is for information purposes only. We neither advocate or advise to work with the afformentioned professionals. We strongly recommend you speak with your existing Accountant about this.