On a parent's bank account? Check the 2026 trust-reporting rules

Why check this before year-end?

Some families share an account or put another person's name on property to help manage money. That arrangement can raise a tax-reporting question, even when no new tax is payable.

CRA's guidance, updated October 5, 2026, explains that certain bare trusts may have to file a T3 trust return and Schedule 15 for tax years ending on or after December 31, 2026. This is earlier guidance highlighted for year-end planning, not a new announcement this week.

Source: CRA's current trust-reporting FAQ

What is a bare trust?

In plain language, one person holds legal title while acting for someone else who benefits from the property. Whether your arrangement is a trust depends on its facts and the applicable law. A shared account name alone does not settle the question.

Two checks before assuming a return is required

1. Is the arrangement excluded? For example, an account can fall outside the reportable-bare-trust definition when all legal owners are also the people who benefit, with no extra legal owners who do not benefit. Certain principal-residence arrangements also have exclusions.
2. Does a listed-trust exemption apply? The law includes an asset exemption of $50,000 throughout the year. A separate $250,000 exemption has conditions about the trustees, related beneficiaries and permitted assets. The balance alone is not the whole test.

For a reportable bare trust, CRA says listed-trust status can remove the T3 and Schedule 15 requirement unless CRA requests a return. Check the full rules for your tax year.

Source: Income Tax Act, subsections 150(1.2), (1.3) and (1.31) · CRA FAQ, questions 2.3.C and 3.1–3.7

A family example

Hypothetical illustration: Assume a parent and adult child have a reportable bare trust holding only cash. Its value reaches $300,000 during 2026. That is $50,000 above the $250,000 asset limit, so this particular exemption is unavailable. Other exclusions and exemptions still need assessment.

Compare that with an account where both people truly own and benefit from the money. The ownership test may produce a different result. Neither example is a decision about your own account.

What should you do now?

• Write down who legally owns the account or property and who actually benefits.
• Keep ownership documents and records of the highest asset value during the year.
• Ask your tax preparer or lawyer whether the arrangement is reportable and whether an exemption applies.
• If filing is required, ask which return, ownership information and deadline apply.

Read our survivor and estate-planning chapter before making changes to ownership. Moving assets or adding a child's name can have consequences beyond reporting.