Do bare trusts need to file a T3 return in Canada right now?

No. CRA has exempted bare trusts from filing a T3 return, including Schedule 15, for the 2023, 2024, and 2025 taxation years (unless CRA makes a direct request for a specific filing). This blanket exemption has been extended repeatedly since the enhanced trust reporting rules were introduced. Starting with the 2026 taxation year, certain bare trusts -- called "reportable bare trusts" under subsection 150(1.3), subject to exceptions in 150(1.31) -- will be subject to the rules, but CRA has not yet published full details on exactly which bare trusts qualify; more guidance is expected before the T3 filing season for trusts with taxation years ending December 31, 2026 (Source: canada.ca, "Enhanced reporting rules for trusts and bare trusts," verified August 2026).

What is a bare trust in Canada?

A bare trust exists when the trustee holds property but has no duties other than to deal with property as directed by the beneficiary. Common examples include holding property for a child, nominee accounts, and some joint accounts.

What are the penalties for not filing a bare trust T3 if filing becomes required?

If a bare trust is required to file and fails to, late filing penalties are $25/day, minimum $100, maximum $2,500. Gross negligence penalties can reach 5% of the highest fair market value of property held. These penalties currently do not apply to most bare trusts, since CRA has exempted them from filing for 2023, 2024, and 2025.

Bare Trust Rules Canada 2026 | T3 Filing Currently Exempt

Canada’s enhanced trust reporting rules were originally announced to take effect for the 2023 tax year, requiring many bare trusts (arrangements where a trustee holds property but a beneficiary is the real owner – a parent on a child’s mortgage, a child on a parent’s bank account for convenience, a numbered company holding real estate) to file an annual T3 return and Schedule 15. CRA has since exempted bare trusts from this filing requirement for the 2023, 2024, and 2025 taxation years – if you have a bare trust arrangement, you currently do not need to file a T3 return for it unless CRA specifically asks you to. Starting with the 2026 taxation year, certain “reportable bare trusts” will become subject to the rules, but CRA has not yet published the full criteria.

What Is a Bare Trust?

Definition

Element	Description
Trustee	Holds legal title
Beneficiary	Has beneficial ownership
Trustee duties	Minimal - act as directed
Trustee discretion	None
Also called	Nominee arrangement

Common Examples

Situation	Bare Trust?
Parent holds property for adult child	✅ Yes
Holding company for real estate	✅ Often yes
Broker nominee account	✅ Yes
Joint bank account (some)	⚠️ Maybe
Mortgage conveniences	✅ Often yes
Informal trust for minor	❌ Usually not

Current Filing Status: Exempt for 2023, 2024, and 2025

Timeline of the Exemptions

Taxation Year	Filing Status
2023	Exempt – CRA will not require a T3 return (incl. Schedule 15) unless it makes a direct request (announced March 28, 2024)
2024	Exempt – bare trusts are not subject to the trust reporting rules for taxation years ending on or after Dec 31, 2024 and before Dec 31, 2026
2025	Exempt – same blanket exemption covers taxation years ending in this window
2026	Certain “reportable bare trusts” become subject to the rules under subsection 150(1.3), subject to exceptions in subsection 150(1.31) – full criteria not yet published by CRA
2027+	Continues under whatever criteria CRA finalizes for “reportable bare trusts”

Source: canada.ca, “Enhanced reporting rules for trusts and bare trusts: Frequently asked questions,” verified August 2026. CRA states additional information will be added in advance of the T3 filing season for trusts with taxation years ending December 31, 2026 – confirm the latest guidance before relying on any filing requirement described here.

What This Means Right Now

Because the 2026 taxation year is still in progress and CRA has not yet published the detailed “reportable bare trust” criteria, no bare trust is currently required to file a T3 return or Schedule 15 based on the ordinary trust reporting rules – the exemption has applied to every taxation year since the rules were introduced. The only way a bare trust would need to file today is if CRA makes a direct request for that specific filing.

Who May Need to File Starting 2026

Category	Status
Most bare trusts (2023-2025)	Exempt – no filing required
“Reportable bare trusts” (2026+)	Subject to rules under s.150(1.3), exceptions in s.150(1.31) – exact criteria pending CRA guidance
Bare trust CRA directly requests a filing from	Must file regardless of year
Certain lawyer trust accounts	Historically proposed as exempt (confirm current status)
RRSP/RRIF/TFSA (already reporting)	Exempt

Filing Requirements (If and When Filing Applies)

The mechanics below describe how a T3/Schedule 15 filing would work if a bare trust is required to file – either because CRA makes a direct request now, or because it becomes a “reportable bare trust” starting with the 2026 taxation year.

What to Report

Information	Required
Trust identification	Name, address
Trustees	Names, addresses, DOB
Beneficiaries	Names, addresses, DOB
Settlors	Names, addresses, DOB
Property held	Description, FMV

Deadline

Due Date	Details
90 days after year end	March 31 for Dec 31 year end
Currently applicable to	Only trusts CRA directly requests a filing from, or reportable bare trusts once CRA’s 2026+ criteria take effect

Exemptions

Currently, the blanket exemption for 2023-2025 taxation years means almost no bare trust needs to file at all – the exemptions below describe the criteria that applied to the original 2023 rules (before the blanket exemption) and that may inform CRA’s forthcoming “reportable bare trust” criteria for 2026+, but they are not the operative rule today.

Exemptions Considered Under the Original (Pre-Exemption) Rules

Exemption	Details
Under $50,000	Assets FMV under $50K all year
Less than 3 months	Existed <3 months at year end
Lawyer trust accounts	Client trust accounts
Certain registered accounts	RRSP, TFSA, RESP, etc.
Mutual fund trusts	Already filing
Principal residence	Some situations

$50,000 Threshold (Historical/Proposed Criterion)

Calculation	Rule
Test	FMV at any point in year
If exceeded ever	Would have required filing under the original rules
If always under	Would have been exempt under the original rules

Confirm with CRA’s published guidance (expected before the 2026 T3 filing season) whether this threshold carries forward into the “reportable bare trust” criteria.

Common Situations

None of the situations below currently require a T3 filing for the 2023, 2024, or 2025 taxation years – they illustrate what would typically constitute a bare trust if and when filing becomes required (either by direct CRA request now, or under the 2026+ reportable bare trust rules).

Parent Holding Property for Child

Situation	Details
Parent on title	For financing purposes
Child is real owner	Paid for property
Bare trust exists	Not currently required to file (2023-2025 exemption); confirm 2026+ status

Adult Child Holding for Parent

Situation	Details
Child on title	For probate avoidance
Parent is real owner	Beneficial owner
Bare trust exists	Not currently required to file (2023-2025 exemption); confirm 2026+ status

Joint Bank Accounts

Type	Bare Trust?
Spouse joint account	Usually no (true joint)
Parent-child “convenience”	Often yes
Business partner	Depends on arrangement

Real Estate Nominee

Situation	Filing?
Numbered company holds real estate	Bare trust likely exists, but not currently required to file (2023-2025 exemption)
Individual is beneficial owner	Confirm 2026+ status once CRA publishes reportable bare trust criteria

Penalties (If a Filing Requirement Applies)

These penalties apply only if a bare trust is actually required to file – either because CRA makes a direct request, or because it becomes a “reportable bare trust” starting with the 2026 taxation year. They do not currently apply to the vast majority of bare trusts, which remain exempt through the 2025 taxation year.

Late Filing

Penalty	Amount
Base	$25 per day late
Minimum	$100
Maximum	$2,500

Gross Negligence

Penalty	Amount
Rate	5% of highest FMV
Minimum	$2,500
Maximum	$25,000

Example Penalties

Property Value	Late (max)	Gross Negligence
$100,000	$2,500	$5,000
$500,000	$2,500	$25,000
$1,000,000	$2,500	$25,000 (max)

How to File (If a Filing Requirement Applies)

The steps below apply only if CRA has directly requested a filing from your bare trust, or once the 2026+ “reportable bare trust” rules take effect for a trust that qualifies.

T3 Trust Return

Step	Action
1	Obtain T3 package
2	Complete Schedule 15
3	Provide required information
4	File by deadline

Schedule 15

Information	Required for
Trustees	All of them
Beneficiaries	All with interests
Settlors	Who created trust
Property	Description and value

Can File Electronically?

Method	Available
Paper	Yes
Electronic (EFILE)	Yes (with software)
Representative	Can file on behalf

What If You Didn’t Know?

Voluntary Disclosure

Option	Details
VDP application	May reduce penalties
Requirements	Before enforcement contact
Benefit	Possible penalty relief

CRA’s Position

Factor	Consideration
Good faith	May help
Never intended trust	Document arrangement
Seek professional advice	Get proper guidance

Avoiding Bare Trust Issues

Documentation Tips

Tip	Why
Written agreements	Clarify ownership
Document contributions	Who paid for what
Keep records	Transactions, decisions
Review arrangements	May need restructuring

Alternative Structures

Instead Of	Consider
Bare trust	Joint tenancy (real joint ownership)
Parent on title	Proper mortgage arrangements
Holding companies	Still may be bare trust
Nothing	Sometimes filing is simplest

Professional Advice Recommended

When to Get Help

Situation	Why
Real estate arrangements	Determine if bare trust exists
Parent-child property	Complex rules
Business structures	Corporate arrangements
Uncertainty	Penalties are significant

Who Can Help

Professional	Service
Tax accountant	Filing and compliance
Tax lawyer	Structure advice, disputes
Estate planner	Arrangement review

Summary

Key Takeaways

Point	Details
No filing required now	Bare trusts are exempt from T3/Schedule 15 filing for 2023, 2024, and 2025 taxation years
2026 taxation year changes this	“Reportable bare trusts” become subject to the rules, but CRA has not yet published full criteria
Penalties don’t apply today	The $25/day and 5%-of-FMV penalties only apply if a filing is actually required
Confirm before filing season	Check canada.ca for updated guidance before T3 season for trusts with taxation years ending Dec 31, 2026

The Bottom Line

If you’re on someone else’s property title, hold a bank account in your name for a family member’s benefit, or use a nominee corporation for real estate, you likely have a bare trust arrangement – but you do not currently need to file a T3 return for it. CRA has exempted bare trusts from the T3/Schedule 15 filing requirement for the 2023, 2024, and 2025 taxation years, and will only require a filing if it makes a direct request. Starting with the 2026 taxation year, certain “reportable bare trusts” will become subject to the rules, but CRA has not yet published the exact criteria – check canada.ca for updated guidance before the T3 filing season for trusts with taxation years ending December 31, 2026. Don’t assume you need to file based on outdated information describing the original 2023 proposal; confirm your specific situation with a tax professional if you’re uncertain.