Trusts — T3

T3 Trust Income Tax and Information Returns filed accurately and on time with the CRA. We prepare and file T3 returns for testamentary trusts, inter vivos trusts, and all other trust arrangements requiring annual reporting.

• Full T3 return preparation and CRA filing
• Allocation of trust income to beneficiaries
• T3 slips issued to each beneficiary
• Review of all trust income sources and deductions
• Deadline tracking — March 31 and estate-specific dates

A Graduated Rate Estate holds a unique position under the Income Tax Act — it benefits from graduated tax rates and a December 31 fiscal year for up to 36 months after death. We ensure the estate is correctly designated and fully optimized during this window.

• GRE designation review and qualification assessment
• Graduated rate calculation and planning
• Coordination with the terminal return and legal estate administration
• Loss carryback and deduction optimization
• Transition planning when GRE status expires

CRA's beneficial ownership disclosure rules require bare trusts to file T3 returns in most circumstances. We assess whether your arrangement triggers a filing obligation and manage the disclosure requirements if it does.

• Filing obligation assessment under current CRA guidance
• Schedule 15 beneficial ownership disclosure
• Nominee arrangements and joint ownership structures
• Ongoing compliance monitoring as rules evolve

Trusts established during a settlor's lifetime — family trusts, alter ego trusts, spousal trusts — require careful annual compliance. We prepare the T3 return and manage the income and capital allocations to beneficiaries each year.

• Annual T3 preparation and filing
• Income allocation and attribution rule review
• 21-year deemed disposition planning
• Spousal and alter ego trust compliance
• Integration with individual beneficiary T1 returns

Trusts involve some of the most complex provisions in the Income Tax Act. We provide planning and advisory services to help trustees, estate executors, and their advisors navigate trust taxation, income splitting, and distribution strategies.

• Pre-distribution income and tax planning
• TOSI (tax on split income) review for family trusts
• Trust wind-up and deemed disposition planning
• Coordination with estate lawyers and financial advisors
• CRA correspondence and audit support