What are some of the situations you have encountered where a T3 will need to be filed under the new trust reporting rules?
Example, if a parent has included their adult child on their land title for estate planning purposes.
I believe that if an adult child has a joint investment/bank account with a parent where the parent retains full beneficial ownership (and pays taxes on the income), this would also be considered a bare trust and a T3 trust return would need to be filed. This is often done for probate planning in Ontario and I have many adult clients that have joint accounts with their elderly parents.
Difficult to charge much for these added returns because it’s no value add to the client. Curious what others are charging to file these.
Yes, I believe the investment/bank account situation would apply if the account is over $50,000. I am also curious what others are charging to file.
I presume it is just a nil return since the elder parent is reporting all income on their return?
So it is just giving the government info on what value of assets they won’t see probate on in future.
I hope it will be just a nil return (disclosure only -S15). I am having difficulty finding specific details on how to file these. The slips will all be in the individual’s name so if the trust picks up the income and flows it through, there will be a matching error on the elder parent’s T1.
I don’t believe the CRA cares what the provinces won’t be receiving probate on. I think it’s to do with deemed dispositions of the securities held in the investment accounts and who’s reporting the capital gains.
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