Graduated rate estate (GRE) T3 return

T3
1

Hi there,

with the new rules for the T3 return, with my understanding, when someone pass away after 2015, we can file a GRE T3 return for up to 3 years? eg, if the beneficiary income is high, it is still benefit to file a T3 return for the CPP death benefit, but now the trust will be GRE trust? What if a person pass away, and there investment income earn after death. Will that be under GRE trust as well? Given that there no spouse.

Thanks,

2

Per my knowledge, CRA had implemented this to have Estate returns wind up faster. You can always pass income to the estate or the beneficiary.

The GRE will be taxed at that rate with in the three years. After that and not wound up then will be at a increased rate.

Your answer to you questions

  1. Correct three years you have to wind up estate return. You also have to have a Dec end fiscal year after three years.
  2. Estate will be at the GRE rate if it is in the three years.
    3.Yes as long as they are still in the three years GRE will apply. It is not in regards to income in the estate it is when the estate was rose and ended prior to Dec 2015.

Examples of scenarios can be found here:
http://www.cra-arc.gc.ca/gncy/bdgt/2014/qa15-eng.html

3

Thank you very much