Bear Trust tax forms

[oldjeda]

Anyone else having to deal with these new tax forms? Looks to me like another way for our government to open the door to an inheritance tax. 😡

I’m on a couple of my (very senior) parents accounts because I’m responsible for managing their money, but now, from what I hear, I need to get some paperwork filled out and sent to the CRA by the end of March or face a daily penalty for every account over $50K.

I guess we knew it was coming. They need more tax money from us to feed their “drunken sailor” spending sprees. My apologies to sailors…..

Thoughts or comments?

[KGB]

Withdraw the money, empty the accounts. Rent the safety deposit box at the bank, keep the cash there.

[CanuckShooter]

First I've heard of that one, what are they calling it? Is there a link so we can look it up?

They want us to report selling our principle residences now also.

I saw Freeland talking about all the savings Canadians have and how they have to find a way to tap into that....looks like we can expect it IF by some act of god Trudeau stays in office.

Edit: found it under BARE Trust.

[I’d rather be outdoors]

Originally Posted by CanuckShooter

I saw Freeland talking about all the savings Canadians have and how they have to find a way to tap into that....looks like we can expect it IF by some act of god Trudeau stays in office.

Tis’ the communist way.

[Geraldsh]

I googled it a bit and got the impression bare trusts worked best for children under the age of 18.
Wouldn’t a Power of Attorney serve your purpose better and avoid the bare trusts requirements?

[Sundancefisher]

Been looking into this from a standpoint of helping a senior with their finances and managing their property.

https://www.canada.ca/en/revenue-age...ber-2023.html#

To me it doesn’t seem like there is an impact unless it’s a formal trust.

Whether there is a power of attorney or not it doesn’t seem to impact helping an aging parent cope.

Anyone see otherwise? I have sent the question into the government.

Hopefully this change annoying Trudeau and his family trust.

[rammer]

it does not need to be a formal trust agreement to have a T3 filing requirement.
Where you have ownership of assets that differ from the ownership on title you have an implied trust which results in a filing requirement.
This would include the bank accounts you mention.
This would also apply to going on title of a parents house to bypass probate when they pass away.

[hansol]

Depends on how the accounts are set up (legal terms matter here.)

If it's a joint account, generally speaking no bare trust arrangement exists when legal title(s) matches the beneficial owner(s).

If YOUR name is on the legal paperwork, but the funds are held for/used by just your parents, then you'd probably want to look into this a bit more. (Read: May need a T3 filing - There's some filing exemptions, but they are rather specific.)

Originally Posted by oldjeda

Anyone else having to deal with these new tax forms? Looks to me like another way for our government to open the door to an inheritance tax. 😡

I’m on a couple of my (very senior) parents accounts because I’m responsible for managing their money, but now, from what I hear, I need to get some paperwork filled out and sent to the CRA by the end of March or face a daily penalty for every account over $50K.

I guess we knew it was coming. They need more tax money from us to feed their “drunken sailor” spending sprees. My apologies to sailors…..

Thoughts or comments?

[Bushrat]

Originally Posted by Sundancefisher

Hopefully this change annoying Trudeau and his family trust.

I doubt Trudeau has anything of any consequence invested in Canada that the tax collector could get their hands on.

[Dean2]

The rules around reporting requirements on Bare Trusts are very specific and very complicated. There are also substantial penalties for getting it wrong. This is a place where it is worth spending some money for professional help. They need to know a LOT of detailed specific information to provide proper advice and you sure as hell are not going to get quality advice doing it the way you are. Not because folks don't want to help but because they just don't have enough information. If you are unwilling to spend the money for professional review and advice, error on the cautious side and file the report.

I suggest people not setup Trusts for Bears, they rarely appreciate it when you do.

[oldjeda]

So would joint accounts/GICs with my dear wife qualify as a Bare Trust?

Another question for our accountant I think.....

[hansol]

No, because you're both on legal title, and are also the beneficial owners. = no filing obligation.

Originally Posted by oldjeda

So would joint accounts/GICs with my dear wife qualify as a Bare Trust?



Another question for our accountant I think.....