Canadian Trust Income Tax Return (T3)

A trust is a form of legal entity in which one administers property (trustee) for the benefit of another (beneficiary).

The most common form of trust is created on death and is commonly referred to as a testamentary trust. Property can be transferred to a trust before death. However, special care and consideration must be made to avoid any adverse income tax consequences. This type of trust is commonly referred to as an inter-vivos trust. The T3 Trust Return reports the income in the trust for the particular reporting period. As trusts are relatively obscure and complex, legal arrangements the expertise of a highly trained professional are always recommended.

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