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Estate Tax Return (T3)

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Corporate Taxes & Accounting Services

Estate Tax Return (T3)

The tax form bundle for a trust is known as a T3 return. The T3 Trust Income Tax and Information Return is another term for it.

When a person dies, their trustee is required to file a T3 tax return for the trust. A testamentary trust is established as a result of a person's death. Either the individual's will or a court decree must specify the terms. If the trust's income from the trust property is taxable during the tax year, you must submit a T3 form.
If the trust's income from the trust property is taxable during the tax year, you must submit a T3 form. The trust:

  • The trust is required to file if it has either disposed of or is believed to have disposed of capital property.

  • Is a resident of Canada (for example, a principal residence or shares)

  • Is a deemed resident trust that holds property that is subject to subsection 75(2) of the Act

  • Has paid a benefit of more than $100 to a beneficiary for the upkeep, maintenance, or taxes on a property maintained for the beneficiary's use (for more information, see "Line 43 –

  • Upkeep, maintenance, or taxes on a property maintained for the beneficiary's use").

  • Total income from all sources exceeding $500 income above $100

  • Distributed capital to one or more recipients

  • Allocated any portion of the income to a non-resident beneficiary

If the estate is dispersed immediately after the person dies or did not make revenue before it was distributed, you may not need to file a T3 return. You should issue each beneficiary a statement stating their part of the estate in these circumstances. T3 slips must be sent to the beneficiary's last known address within 90 days of the trust's tax year's end.