Bare Trust Filing Is Back for 2026: Is Your Name on Someone Else's Property or Account?

What changed

On October 5, 2026, the Canada Revenue Agency (CRA) updated its guidance on trust reporting. After two years in which bare trusts were exempt from filing, the CRA now says that certain "reportable bare trusts" must file a T3 Trust Income Tax and Information Return, including Schedule 15 (beneficial ownership information), for tax years ending on or after December 31, 2026. For a calendar-year arrangement, the return is due 90 days after year-end, which means March 31, 2027.

A bare trust can exist without any written trust document. It usually arises when one person is on title or on an account but another person is the real owner. Common examples:

• A parent is on the title of a child's condo or house to help with the mortgage.
• A child holds a parent's bank or investment account "in trust".
• A business owner holds an asset personally on behalf of their corporation or a partner.

Who is affected

The CRA lists several exceptions. Among them: related individuals holding real property that is a principal residence for one of them, a spouse or common-law partner holding a home that is the principal residence, and joint accounts where all legal owners are also beneficiaries. Smaller trusts may also avoid filing unless the CRA asks. These include trusts with assets of $50,000 or less all year, and some family trusts with assets of up to $250,000 that meet conditions.

In BC, many families add a relative to a property title to help with a mortgage. Newcomers often hold property or accounts for family members, here or abroad. If either describes you, review your situation now. Penalties for late filing start at $25 per day, with a minimum of $100 and a maximum of $2,500. Serious cases can face higher penalties.

What to do now

1. List any property, bank or investment accounts where the name on the title is not the true owner.
2. Gather details: the legal owners, the beneficial owners, and how and when the arrangement began.
3. Check whether an exception applies, and keep a record of why.
4. If filing is needed, plan to get a trust account number and file by March 31, 2027.

How Trust Business Partners can help

We review your arrangements and tell you whether you need to file. Where filing is required, we prepare and file the T3 return and Schedule 15. We serve clients in English, French and Arabic.

📞 +1 (778) 800-0051 | ✉️ [email protected] | 🌐 www.trustbp.ca

Disclaimer: This article is general information only, based on CRA announcements as of October 11, 2026. It is not tax or legal advice. Please contact us for advice on your own situation.