We have sent out numerous updates about trust, in trust, and bare trustee reporting. If any of these situations apply to you and we are NOT aware of it, please contact your LCA advisor:
1. Trustee of a formal trust
2. Hold an in-trust account for someone else.
a. For example, a parent or grandparent being the name on a bank account or investment account in trust for a child or grand child
3. Hold an asset in trust for someone else. Examples are:
a. A parent being on title which is being held for their child. This may have been done to help with the approval of a mortgage
b. A child being on title which is being held for a parent. This may have been done for probate purposes. This could be a real estate property or cash/investment account.
4. Lawyer that has a specific trust account for a client. This does not include a general trust account.
5. Real estate brokerage that has a specific trust for a client. This does not include a general trust account that is regulated under the Real Estate Council of Ontario (RECO) or a similar body.
6. An Accountant who manages money for a client using the Accountant’s own business account.
7. A corporation is a bare trustee on title for a real estate property on behalf of others. This could be for a partnership, joint venture, individuals, or corporations.
8. Any situation where the name on title/ownership is different than the person who is meant to get the benefit of that asset. The reason doesn’t matter. What matters is that someone is holding something in trust for someone else.
a. Do not worry if a formal document has not been prepared. CRA will accept a “summary” document that highlights the details of the arrangement. It can be prepared for purposes of the tax filing.
The due date for all of these filings is April 1, 2024, this year. For each trust situation you will need to report the following:
- Any individual with the ability to influence a trustee’s decision
The information to be provided for each of the above is:
- Type of Entity (e.g. Corporation or individual)
- Date of birth (if applicable)
- Jurisdiction or residence
- Taxpayer ID number
- SSN if US resident
- Any other tax ID used in the foreign jurisdiction where the person is resident.
At this point, the most important thing is to make sure that we are aware of the situation so that we can ensure the timely filing of the trust reporting.