Estate Planning & Trusts

The final return is a regular T1, marked “Deceased” with the date of death at the top, reporting income from January 1 to the day the person died. It is due April 30 of the following year, or six months after the date of death where death occurred between November 1 and December 31. Death…

Bare trust T3 filing returns for the tax year after three years of relief. Bill C-15 received Royal Assent on March 26, , and the rules apply to taxation years ending on or after December 31, , with the first returns due March 31 of the next year. Certain arrangements, which CRA calls reportable bare…

Estate planning mistakes can cost Canadian families tens of thousands of dollars in unnecessary taxes, probate fees, and legal complications. The five most expensive mistakes include failing to update beneficiary designations on registered accounts, ignoring RRSP tax consequences at death, missing capital gains tax planning opportunities, avoiding professional estate planning services, and forgetting about probate…

What happens to your RRSP when you die in Canada depends entirely on who you named as your beneficiary and what your relationship was to that person. The Canada Revenue Agency treats the full fair market value of your RRSP as income on your final tax return in the year of death, which means your…

Deemed disposition Canada rules require taxpayers to pay capital gains tax on assets as if they were sold when leaving the country permanently. The Canada Revenue Agency (CRA) treats your departure as a taxable sale of most investments, rental properties, and business assets at fair market value. This exit tax applies even though you keep…

When you leave Canada, your child’s RESP does not automatically close, but it becomes a serious financial and tax concern almost immediately. The moment you become a non-resident, government grants may need to be repaid, tax implications shift, and your financial institution may ask you to close the account entirely. Understanding these changes before you…