Hello I received a T3 Statement of Trust Income today. Its for my 5 year old daughter and the recipient is her. It is not my SIN number on the paper. Who claims it?
Thanks
Where did the money come from that generated the income? Attribution rules may apply.
My grandfather that passed away several years ago had in his will a percentage of his estate be put into a trust fund for any grandchildren myself or my sister have or may have.
Tim Boufford
Boufford Tax Preparation
226-346-1158 (cell)
timboufford@cogeco.ca
As the giver has passed away, the income is taxable income for your daughter.
Would she have to file a return at the age of 5 years old or just put down under net income on the dependent form
Tim Boufford
Boufford Tax Preparation
226-346-1158 (cell)
timboufford@cogeco.ca
Would there be tax owing?
Also, was there any tax withheld?
Since this money from your grandfather’s estate was put into a trust fund, there likely should be a T3 return filed each year. The treatment of net income in the trust would determine who pays the tax on the income.