To clarify who needs to file a T3 and who does not, I asked Pam Prior, a tax partner at KPMG in Vancouver, to answer some reader questions
You thought you were helping your children or grandkids get a start on investing. Turns out you likely created an estate-planning arrangement called a bare trust. Same if you were listed as a joint bank or investment account holder with an aged parent or if you co-signed an adult child’s mortgage.through the filing of a T3 trust income tax and information return and a related Schedule 15 form, both of which can be a challenge to navigate.
. Here are the queries and her responses:If you have multiple joint bank or investment accounts with an aged parent, do you need to complete a T3 for each separate account?Assuming each account has the same adult child as a joint owner, it would be reasonable to treat all accounts as one bare trust and file one T3 trust return. The accounts do not need to be at the same institution to be treated as one bare trust.
One final point worth reinforcing is that there is an exemption on bare trust reporting where the accounts involved have a value of $50,000 or less. This applies to cash in bank accounts and publicly traded securities in investment accounts, with a possible exception for dividend-paying stocks. Are you a young Canadian with money on your mind? To set yourself up for success and steer clear of costly mistakes,
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