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Use this guide if you are filing a t3 return for either a testamentary trust or an inter vivos trust This detailed guide explains what the t3 slip is, what it includes, and what beneficiaries need to know when reporting trust income to the canada revenue agency (cra). For more information, see types of trusts
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The word you throughout the guide refers to the trustee, executor, administrator, liquidator, custodian, or anyone preparing the t3 return for a trust. Recently, the canada revenue agency (cra) announced new rules governing which trusts must file the t3 return, when to file it, and what information to provide. Get the latest on 2025 trust and bare trust tax filing requirements in canada, including cra updates, exemptions, and deadlines for t3 returns.
Much like a t1 return for an individual, the t3 must include basic information about the taxpayer (i.e., the estate itself)
This includes the trustee or executor’s address, the social insurance number of the deceased, the date of death, beneficiary information and a valuation of estate assets included on the deceased’s final t1. Understanding the taxation of trusts and estates in canada is crucial for effective financial planning and ensuring compliance with the law Trusts and estates involve complex tax rules that can significantly impact beneficiaries and trustees. Fulfilling tax responsibilities after the death of a loved one is crucial to prevent penalties, ensure smooth asset distribution, and maintain compliance with canadian tax laws
Executors must be prepared to navigate both procedural and financial intricacies involved in tax filings. Trusts offer a flexible and efficient way to manage and distribute assets according to specific wishes If the estate was held in a trust, any income earned after the death of the deceased is reported on a t3 trust return. Information for trusts, including testamentary and inter vivos
Includes information on the different types of trusts, filing requirements and information on how to complete the t3 return and certain t3 schedules.
