Fiscal Agents - Money Management Newsletter

Is it spring yet? Who can tell? This month, we have more important information to share concerning the CRA’s adjustments to trusts and joint account reporting requirements, an article concerning how to find help if you can’t access your pension, and pet ownership in context of estates.

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Warning on CRA reporting requirements for Joint Accounts and In-Trust-For Accounts, as well as joint real estate ownerships: Are you affected?

Joint accounts and in-trust-for accounts could be potentially captured by new T3 trust filing requirements for the December 31, 2023 year-end, with filing due by April 2, 2024. For some background information, refer to the article excerpted below (“New trust reporting rules include in-trust accounts, jointly owned assets“ by Vivek Bansal, published on Advisor.ca):

“If [you] have set up an in-trust-for (ITF) account for [your] minor child or own certain assets jointly, [you] could be subject to new trust reporting rules that apply for taxation years ending after Dec. 30. These new rules could require [you] to file a T3 Trust Income Tax and Information Return within 90 days of the year-end, even if there is no income or activity to report.

The new reporting requirements were initially applicable only to express trusts, which are trusts created using the settlor’s clear written or verbal intent (as opposed to arising by operation of law). However, these rules were later expanded to include bare trusts, which are defined under the legislation to include “an arrangement where a trust can reasonably be considered to act as agent for its beneficiaries with respect to all dealings in all of the trust’s property.”

Do you suspect you may be affected by these new requirements? In light of the potentially heavy penalties that may be levied on individuals who do not properly comply, Fiscal Agents recommends contacting your tax professional or legal advisor for further clarification with respect to your individual situation.

Good Reads

FSRA pegs ‘stranded’ pension plans at more than $3 billion

Regulator says there are almost 200,000 pension plan members in the province who have lost track of their plans

By Sammy Hudes, The Canadian Press, posted on Investment Executive

From the article: Two years ago, Ihor Weryha finally felt ready to retire. The Mississauga, Ont., resident had spent 40 years working in the petrochemical industry, most of which had been evenly split between two companies.

But as he began gathering the documents he’d need to activate his pension, Weryha discovered a big problem: his former employer said it didn’t have any files from his two decades with the company. “I didn’t exist in their records whatsoever,” said Weryha, 68.

Read the full article on the Investment Executive website

Dog belongs to estate, court rules

Core issue is ownership of the dog, which is considered property

By James Langton, Investment Executive

From the article: Ontario’s Superior Court of Justice ruled that Rocco Jr., a bull terrier, which was owned by Leonard Carvalho, until he died in 2022, must be returned to the estate trustee, Carvalho’s sister Arlete.

According to the court, after Carvalho died in November 2022, his one-time companion, Aliesha Verma, took the dog to live with her. However, the estate’s trustee brought an application seeking the return of the dog, arguing that it properly belonged to the estate. Verma argued that the dog was hers.

Read the full article on the Investment Executive website

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