CRA’s bare trust reporting rules: what you need to know and do
The Canada Revenue Agency (CRA) has introduced mandatory annual reporting requirements for bare trusts starting with the 2026 tax year.
While this creates another layer of government paperwork, most clients will not be affected.
Here is what you need to know, how to tell if this applies to you, and what to submit if we need to file on your behalf.
Do you need to file?
Someone else’s name is on title or account
(e.g., child co-signer, aging parent)They don’t own the money
Added for convenience or mortgage rule onlyA 2026 T3 bare trust return must be submitted by March 31, 2027.
Key points at a glance
No extra tax owed
A bare trust return is an informational filing only. It does not create new income tax. The true owner continues to report all income and capital gains as usual.
Who is affected
Only arrangements where legal ownership and beneficial ownership are separated.
Deadlines
The CRA statutory deadline is March 31, 2027. If you want Paul Nethercott CPA to file for you, please submit your information through the form below by January 15, 2027.
Step 1 Does this apply to you?
The simplest test to determine if you have a bare trust is:
Is someone’s name on legal title or on an account even though another person or business is the true owner?
Situations that may be a bare trust:
- An adult child is named on an aging parent’s bank or investment account solely for convenience, but the money belongs entirely to the parent.
- An account is held “in trust for” a child or grandchild.
- Someone is listed on title to a property (e.g., co-signing a mortgage for an adult child) but has no genuine financial ownership.
- An individual or corporation holds legal title to real estate, a vehicle, or an investment account on behalf of someone else or another entity.
Situations that are NOT a bare trust:
- Genuine joint accounts: A regular joint bank or investment account where all named account holders are true co-owners (such as spouses sharing an account).
- Standard registered accounts: RRSPs, TFSAs, FHSAs, and RESPs.
- Low-value arrangements: Accounts where the total value remained under $50,000 Canadian throughout the entire year.
If none of the bare trust situations apply to you, you do not need to take any action.
Step 2 What you need to do
If you have an arrangement matching the bare trust criteria above, we can prepare and submit your T3 bare trust return to the CRA.
Arrangements that were opened, active, or wound up during 2026 must be reported. Please complete the form below by January 15, 2027, so our team has adequate time to review your details and prepare the filing.
Bare Trust Information Form
(Fill out the details below. Our office will review your submission and contact you directly if any clarification is needed.)
Questions?
Karen Budden is coordinating these filings for our office. If you are uncertain whether your arrangement qualifies, reach out directly:
- Phone: 613-503-0678
- Email: admin@nethercott.ca
- Official reference: CRA Enhanced Reporting Rules for Trusts & Bare Trusts FAQ
Contact Get in touch
Paul Nethercott
Chartered Professional Accountant
1641 County Road 10
Cherry Valley, ON
K0K 1P0