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Hi Cherry This was very well explained and made simple to understand! If my adult kids are on two of my bank accounts and they are both under $50K but together add up to more than $250K, do they have to file for this or is the $250K threshold applicable to each account individually?
During 2023 I actually registered two Bare Trusts, one to comply with being joint on mom's bank account, and the second for being registered on title to her house. Now it seems that for 2025 I am no longer required to claim either Trust. How do I, or should I cancel both Trusts or simply do nothing with them? PS. LOVE your videos!!
So happy you showed up in my Utube list. My mother and my aunt both added in their bank accounts just this year since they are in their 80s. Would my aunt qualify for related definition or is this only for immediate families, such as my mother?
Love your videos. So clear and precise. One question I have ..in the case of a Bare Trust, in my case I have a joint account with my daughter, all in fixed deposits and cash, less than $50,000/- so no reporting is required. But, for clarity sake, who would have to report the taxes, my daughter or myself. It is a joint account.
Depends on who funds the account, your daughter's age, and also what your intention is. As an example, if your daughter is under 18, and you're the one funding the account, the return should be reported in your name. On the flips side, if the daughter is over the age of 18, and your intention is to gift the cash to your daughter, she has the money, then the return should be reported by her. And then there are other scenarios as well.. .So again, depends on your particular situation.
“Related party trusts” can be anyone one is related to, right? My elderly aunt just added me to her bank account (less than $250K) so that I inherit the cash when she passes away. Checking if this falls under what you discussed. My interpretation is I only pay the CRA when my aunt passes away?
Hi Cherry. I have a Bare Trust Agreement in place with my name on title as the trustee but my son is the real owner. I was able to get the mortgage set up in my name and the lawyer had advised I would not be subject to capital gains if my son's house was sold but, I also have my principal residence. Since my son and his family have always lived in this house, paid all bills, mortgage, and maintained the property, will he be able to consider the house his principal residence when I die or will he be subject to capital gains? I submitted a T3 last year before finding out it was no longer needed. I claimed no income or expenses on the property. Thank you in advance.
In your particular situation, it's best to consult with an accountant and maybe also a real estate lawyer that's familiar with trust law to help you out.
We are in the 3rd scenario where I co-own a property with my parents (who live there as primary residence). On the title, we had registered my parents as owning 49% each and myself as 2%. When they sell, do I pay capital gains on the 2%? (It was funded by their money.) Secondly, we were thinking to remove myself from title because of this bare trust requirement but now that the draft legislation has changed, I am wondering if it is even necessary anymore. Any thoughts to this?
For the purpose of this video and trust law, as long as one of the legal owners live in the property and the owners are all related, you don't need to remove your name... no filing obligation under this new trust reporting rule. Capital gain is a different story. Should consult with a professional accountant.
For related trust if there are multiple GIC’s and bank account that add up to over 250K you are saying I have to report it even though individually each of the accounts are less than $250k.. is this correct?
It certainly seems very confusing. The bank accounts under 50k seem straight forward but the property in joint names with a value of over $250k and doesn't fall under reporting requirements if you are related parties. I thought they were going after people who were trying to avoid probate.
What an incredibly stupid and racist comment. You should use your real name so that people know who you are. If you are too ashamed of using your real name, then maybe you should avoid making comments like these.
Thankfully we live in Canada. Our government doesn't really specify the ethnicity of the people who draft the legislation. I can't tell you if this legislation is trust worthy according to your definition.
Hi Cherry This was very well explained and made simple to understand! If my adult kids are on two of my bank accounts and they are both under $250K but together add up to more than $250K, do they have to file for this or is the $250K threshold applicable to each account individually?
Hi Cherry This was very well explained and made simple to understand! If my adult kids are on two of my bank accounts and they are both under $250K but together add up to more than $250K, do they have to file for this or is the $250K threshold applicable to each account individually?
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Hi Cherry - well done. Just a note to those viewing that for the related party trust, ETFs are also included on the asset list.
Thank you for clarifying
Hi Cherry
This was very well explained and made simple to understand! If my adult kids are on two of my bank accounts and they are both under $50K but together add up to more than $250K, do they have to file for this or is the $250K threshold applicable to each account individually?
During 2023 I actually registered two Bare Trusts, one to comply with being joint on mom's bank account, and the second for being registered on title to her house. Now it seems that for 2025 I am no longer required to claim either Trust. How do I, or should I cancel both Trusts or simply do nothing with them?
PS. LOVE your videos!!
Thanks for the love. You should be able to close these trust account - particularly after this legislation comes into effect.
So happy you showed up in my Utube list. My mother and my aunt both added in their bank accounts just this year since they are in their 80s. Would my aunt qualify for related definition or is this only for immediate families, such as my mother?
Thank you for the info. Is the $50,000 & $250,000 total value of the property or the portion for the trustee?
Love your videos. So clear and precise. One question I have ..in the case of a Bare Trust, in my case I have a joint account with my daughter, all in fixed deposits and cash, less than $50,000/- so no reporting is required. But, for clarity sake, who would have to report the taxes, my daughter or myself. It is a joint account.
Depends on who funds the account, your daughter's age, and also what your intention is. As an example, if your daughter is under 18, and you're the one funding the account, the return should be reported in your name.
On the flips side, if the daughter is over the age of 18, and your intention is to gift the cash to your daughter, she has the money, then the return should be reported by her.
And then there are other scenarios as well.. .So again, depends on your particular situation.
Thanks so much. Very clear.
“Related party trusts” can be anyone one is related to, right? My elderly aunt just added me to her bank account (less than $250K) so that I inherit the cash when she passes away. Checking if this falls under what you discussed. My interpretation is I only pay the CRA when my aunt passes away?
AWSOME & VERY ARTICULATED REPORTING 👍.
BASICALLY; FAMILIES LIVING BASIC LIFE TRASACTIONS GETTING A BREAK.
Sounds about right...
Hi Cherry. I have a Bare Trust Agreement in place with my name on title as the trustee but my son is the real owner. I was able to get the mortgage set up in my name and the lawyer had advised I would not be subject to capital gains if my son's house was sold but, I also have my principal residence. Since my son and his family have always lived in this house, paid all bills, mortgage, and maintained the property, will he be able to consider the house his principal residence when I die or will he be subject to capital gains? I submitted a T3 last year before finding out it was no longer needed. I claimed no income or expenses on the property. Thank you in advance.
In your particular situation, it's best to consult with an accountant and maybe also a real estate lawyer that's familiar with trust law to help you out.
We are in the 3rd scenario where I co-own a property with my parents (who live there as primary residence). On the title, we had registered my parents as owning 49% each and myself as 2%. When they sell, do I pay capital gains on the 2%? (It was funded by their money.) Secondly, we were thinking to remove myself from title because of this bare trust requirement but now that the draft legislation has changed, I am wondering if it is even necessary anymore. Any thoughts to this?
For the purpose of this video and trust law, as long as one of the legal owners live in the property and the owners are all related, you don't need to remove your name... no filing obligation under this new trust reporting rule.
Capital gain is a different story. Should consult with a professional accountant.
For related trust if there are multiple GIC’s and bank account that add up to over 250K you are saying I have to report it even though individually each of the accounts are less than $250k.. is this correct?
What if you already filed for 2023? If the new legislation passes, can you close/cancel the trust you opened with CRA as it would then be exempt?
Should be. I mean, this is a draft legislation, which will likely go into real legislation. No filing requirement for 2024.
Love your video. It is well explained.
Glad it was helpful!
It certainly seems very confusing. The bank accounts under 50k seem straight forward but the property in joint names with a value of over $250k and doesn't fall under reporting requirements if you are related parties. I thought they were going after people who were trying to avoid probate.
They are trying to go after people who are using other people's name to purchase properties and not pay the taxes.
Love your videos
Please provide another video update in early 2025 when “proposed legislation” is finalized by the CRA.
Will do! Thanks
Hey the govt needs money for their friends. Expect more rules and registries to collect money.
oh absolutely. This trust reporting is also done in the US as well. The big brother is clamping down.
Hello
Hello, I would like to ask a question about Capital Gain on selling a cottage
@@ShameezaSherman Me too, how about Capital gain if the property belongs to the true owner. Thanks
This just proves government is too big, too expensive and doesn't represent us the voter.
I am glad my mom didnt put her home under my name .. so i can leave Canada free😂
:D
I Do not trust Chinese in this business 🙏
What an incredibly stupid and racist comment. You should use your real name so that people know who you are. If you are too ashamed of using your real name, then maybe you should avoid making comments like these.
Thankfully we live in Canada. Our government doesn't really specify the ethnicity of the people who draft the legislation. I can't tell you if this legislation is trust worthy according to your definition.
Hi Cherry
This was very well explained and made simple to understand! If my adult kids are on two of my bank accounts and they are both under $250K but together add up to more than $250K, do they have to file for this or is the $250K threshold applicable to each account individually?
Hi Cherry
This was very well explained and made simple to understand! If my adult kids are on two of my bank accounts and they are both under $250K but together add up to more than $250K, do they have to file for this or is the $250K threshold applicable to each account individually?