Do you have a Trust? No? Are you sure? Read on....

Before you stop reading because you don’t think you have a trust or any involvement with a trust, ask yourself a few questions:

• Have I co-signed for a mortgage for anyone, including my children?

• Have I added another person, other than my spouse, to the title of my home or property? 

• Have I been added to someone else’s property title besides a spouse?

• Have I added my children or a friend to my bank or investment accounts to assist with banking and investment activities?

• Have I been added to someone else’s bank or investment accounts to assist them with banking and investment activities?

If you answered yes to any of these questions, you could have unknowingly created a trust.  These types of trusts are known as Bare Trusts and given that they do not require any documentation, you may not even realize its existence.

Bare Trusts are included in the latest changes implemented by the CRA, concerning reporting requirements for Trusts and may now require the filing of a T3 Trust Income Tax and Information Return. The return is due 3 months after the year-end of the trust.  If you fail to file it and should have, penalties start at $100 and increase at a rate of $25/day to a maximum of $2,500.   

Reach out to a lawyer or professional accountant to determine if your situation constitutes a bare trust and if you are exempt or required to file a T3 Trust Income Tax and Information Return. 

Contact me to discuss your situation by email at kim@cpakm.ca