Completing a T3 and Schedule 15 for Bare Trusts

[@stepannovotny4291]

This video is ACTUALLY very useful. Thanks for having the foresight for doing this, and for explaining AND providing context throughout. It's brilliant!

[@aaronhector]

Thanks! I really appreciate it and am happy it helped!

[@LindaLee-c4b]

Amazing, Aaron! Very clear step by step. Thank you! I called CRA, waited an hour, the agent had no idea and my call was disconnected.

[@sheela3674]

I hear you. My senior dad called to clarify. He was put on hold for half an hour as they did not have an answer and call disconnected. A friend of mine had the same response !

[@xSPiTFiRE42x]

This was so easy to follow. Appreciate you making this video!

[@sheela3674]

Thank you so much. This is so helpful and clear, as the information on CRA site is intimidating!❤

[@aaronhector]

Glad it was helpful! Thanks for your comment, it’s always nice to hear feedback.

[@nicolec7949]

Great video and guide. You saved my day. Thank you so much

[@aaronhector]

Thanks… by the way, today the govt announced you no longer have to file these… so don’t!

[@TonyKing-xm1el]

Excellent tutorial, Aaron! Wonder if you can do one for UHT since affected owner of two properties on Title with Mom and siblings. Thank you so much!!!

[@aaronhector]

Hi Tony, that's a great suggestion. However, at this time I am not planning a UHT video (at least not in the very near term). I'm sorry about this. Good luck with everything!

[@arnoldwilson5377]

Great stuff, thanks.

[@nickv2123]

hi. would the trust not be considered an inter vivo trust because the settlor is still living? My understanding is that even for a bare trust you would indicate the date the bank account was open (or act trustee was added).

[@tupp2998]

New CRA announcement...Bare Trusts are exempt for 2023.

[@mikeh85725]

Thank you. In a situation where a parent co-signs a mortgage for an adult child and both end up as owners on the title (legal owners; co-trustees), and only the child resides at the property (and pays all the associated costs; beneficial owner), it is not clear to me why a Settlor is required. Assuming the Settlor is a person that has made a loan or transfer of property, either directly or indirectly, for the benefit of the trust? Who would the Settlor be in this situation? There also doesn't appear to be a controlling person in my example. Thanks.

[@aaronhector]

These bare trusts are confusing for sure as often these relationships are not very clear. I would assume the settlor in this case would be the adult child, they would have been the one to make the down payment and as the beneficial owner of the property it is “their asset” which has created the trust relationship. Agree, no controlling person, so leave that blank.

[@mikeh85725]

@@aaronhectorThank you.

[@chris50329]

Very good video and explanation of the process. Hopefully CRA will offer an on-line submission capability in future years.

[@lenklochek5925]

Thank you for an excellent video

[@aaronhector]

Thanks, glad you liked it!

[@SR-oc2cm]

If there are multiple accounts, do we need separate trust numbers?

[@aaronhector]

If the parties are identical (same beneficaries/trustees/settlors) on the accounts, then they would be combined into a single filing (I'd suggest listing the various accounts all on the letter that is submitted following the trust number being generated) ..... but if the people are different, then they would be different bare trusts each requiting their own Trust registration & number and separate T3/Sched 15 filings

[@barneyau4121]

Thank you for the very helpful video! I think you left out the date of the bare trust creation. Would the date be written in the "Inter Vivos Trust" section of the T3, even though the context is bare trust?

[@aaronhector]

Yes I did miss that, I’ve debated re-recording the video but… ultimately decided to leave it up as I know a lot of people have been directed to this link. But yes put the date the trust was created under the inter vivos section. Inter vivos simply means a trust that was created while the settlors were alive. Therefore, a bare trust is in fact an inter vivos trust.

[@littleal5723]

Great video explaining the nitty gritties! Wish I had seen this last week, and I’d have saved a couple days of my time! BTW, I hope you can help with a couple questions. So, my parents have a bank account and use its funds to buy GICs. Will I need to file one or three separate T3RETs? I was added to their account more than twenty years ago, and have no clues whatsoever what the trust creation date was. Can I just make one up? Thanks!

[@Hi-ei4hu]

Why the settlors and the beneficiary are the same person? Shouldn't kids be the beneficiary?

[@askarzadeh]

Great video! 😊

[@aaronhector]

Thanks!

[@ElizaPai]

Thank you for your video. Is bare trust belong to Inter Vivos Trust? Should we fill out the date the trust was created on page 2?

[@aaronhector]

Yes a bare trust is indeed a form of an inter vivos trust, in hindsight I didn't show that part correctly. I'm going to see if I can figure out how to fix that on the video. Thanks for highlighting that.

[@tupp2998]

This is so helpful and exactly what I was looking for. My situation is exactly the same as your example. My sister and I are joint on my fathers account. Do we both have to register separate trust account numbers and each fill out our own T3 and schedule 15?

[@JiaYi-o7q]

This is just what I needed! I just found out about this new reporting requirement and was in a state of panic before I found your video. Thank you so much! One question - Does it matter who applies for the trust number? Would it typically be one of the trustee (son) or John in the case of your example?

[@aaronhector]

No it shouldn’t matter who applies. As long as they are communicating with each other so they don’t both do it!

[@maurosartori5119]

I assume that the address of the settlor and the beneficiary should be identical and that the beneficiary's address is a simple mistake. ??

[@aaronhector]

That was a copy and paste error!! Oops! Thanks for pointing it out, they definitely should be identical

[@maurosartori5119]

Thanks for the confirmation. Excellent video by the way! This is golden given all the speculation and confusion out there on this topic.

[@DukeTDang]

When I save the pdf, it asked me for the password (I did not setup) to open it again? What’s going on? Anyone else get this? What’s the use if not re-readable?

[@protaxmuneesh]

Very informative

[@aaronhector]

Thanks!

[@ryanm7171]

Should people still complete these schedules if they feel they aren't in a true bare trust arrangement but fear the penalties from CRA more? Should people try and mitigate things by splitting their investment accounts to ensure each has less than 250K in them. My mother and I are unique in that we still live together because we're both single and I don't have any other siblings or children. We are also both disabled. Decades ago, my mother gifted me her money, and I invested it jointly. I was also given an insurance settlement and invested it jointly. I pay all the taxes, but my mother has full discretion and access to the account to access funds to pay for her or our joint household expenses. I obviously do, too. If you agree that we're not in a bare trust arrangement, are you able to, for a reasonable fee, provide an opinion letter we could rely on. A lawyer has already told us informally that there is no bare trust arrangement, but it would be reassuring to also hear it from a tax professional.

[@oksana7301]

I’m sorry but you’ve made this even more confusing for me

[@aaronhector]

How so, care to expand on your comment?