Bare trusts: New tax legislation for 2023
Many families may utilize what are called ‘bare trusts’ to support the financial arrangements of a family member. Examples of bare trusts would be situations like joint bank accounts or real estate held in trust for a family member with a disability. New 2023 tax legislation requires people to file T3 trust returns on ‘bare trusts’ prior to April 2nd, 2024. While there may or may not be tax implications for the holder of a bare trust, there are significant penalties for not reporting this type of arrangement on time. Inclusion Alberta cannot advise on the filing requirements so if you have any questions or think this may affect you in any way, please consult an accountant well before the deadline date. Reporting must be filed by April 2nd, 2024 to avoid possible penalties.
For more information, visit the Canada Revenue Agency’s website here.