Bare Trust T3 Filing in Canada (2026) — Schedule 15 Reporting, Exemptions, and Penalty Risk

Quick answer (60 words)

For taxation years ending in 2024 and 2025, the Canada Revenue Agency confirmed that most bare trusts do not have to file a T3 return or Schedule 15. For taxation years ending on or after December 31, 2026, certain bare trusts will be required to file under Bill C-15, with proposed exemptions for assets under $50,000, joint spousal accounts, and a parent on title for a child’s principal residence.

Author: Bader A. Chowdry, CPA, CA, LPA — Founder, Insight Accounting CPA Professional Corporation, Mississauga, Ontario. Trust returns, T3 Schedule 15, and CRA correspondence.

Background — what changed and why this is confusing

The original enhanced trust reporting rules introduced in Budget 2018 and updated through Bill C-32 and subsequent legislation aimed to require bare trusts to file an annual T3 return with a Schedule 15 disclosing beneficial ownership. Initially scheduled to apply to taxation years ending after December 30, 2023, the rollout has been chaotic.

Three milestones in plain language:

March 28, 2024: the CRA announced that, “in recognition of the unintended impact” and the public’s understanding of the new rules, it would not require bare trusts to file a T3 return including Schedule 15 for the 2023 taxation year, except in cases where the CRA makes a direct request.

October 29, 2024 (and again confirmed for 2025): the CRA extended its administrative relief and confirmed that bare trusts are not required to file a T3 return including Schedule 15 for taxation years ending in 2024 and 2025, again subject to direct CRA request.

Bill C-15 (2025-26 budget implementation): the federal government tabled Bill C-15 with proposed amendments to the trust reporting rules. The proposals include explicit statutory exemptions for several common bare-trust arrangements that had caused the most concern (assets below $50,000, joint spousal accounts, a parent on title for a child’s principal residence). The CRA has stated that, where the law has not yet been enacted but the CRA expects it to be, the CRA will administer the rules consistently with the proposed amendments. The current expectation is that certain bare trusts will need to file for taxation years ending on or after December 31, 2026.

The net effect: for the 2024 and 2025 taxation years, most bare trusts do not file. For the 2026 taxation year and beyond, certain bare trusts will need to file, subject to proposed exemptions, with the rules being administered under the CRA’s “administering the proposed amendments” approach.

What is a bare trust, in CRA terms

A bare trust exists when the legal owner of property holds it solely for the benefit of one or more beneficial owners, with no discretion as to use, no obligation to manage, and no power to deal with the property except as directed by the beneficial owner. The legal owner is effectively a nominee.

Common bare trust arrangements seen in Insight Accounting CPA’s practice:

• Parent on title for adult child’s principal residence. Parent co-signs a mortgage and is on title; the adult child lives in the home, pays the mortgage, and is the beneficial owner. The parent is a bare trustee for the child’s portion.
• Joint bank account with right of survivorship, where one party contributes all funds. Senior parent adds an adult child to a joint chequing account for estate-planning convenience; the parent is the beneficial owner and the child is a bare trustee of their nominal share.
• In-trust-for (ITF) account for a minor child. Grandparent or parent opens an investment account naming themselves “in trust for” a minor. Whether this is a true (express) trust or a bare trust depends on the facts.
• Nominee corporation holding real estate for a development partnership. A common real-estate-development structure where a numbered company sits on title as nominee for the underlying joint venturers.
• Property held by a lawyer or notary as nominee. During closing or in connection with a litigation hold.
• Estate situations where probate has not yet been granted. Briefly during the period between death and probate, the estate trustee can be treated as a bare trustee.

The thing that makes a bare trust legally distinct from an “express trust” is the absence of any independent trustee duty. The trustee here is a nominee for the beneficial owner and does whatever the beneficial owner says.

Proposed Bill C-15 exemptions — who likely does not have to file

The proposed Bill C-15 exemptions are the most important practical thing to understand for 2026 planning. The exemptions include (but are not limited to):

Exemption 1 — De minimis: assets under $50,000. If the total value of all assets held by the bare trust did not exceed $50,000 at any time during the year, the bare trust is exempt from the T3 filing requirement. For most small in-trust-for accounts and small joint accounts, this exempts the arrangement. The $50,000 test is on the gross value of all property held in the bare trust during the year, measured at fair market value.

Exemption 2 — Joint spousal arrangements. A bare trust where the property is held jointly by two or more individuals who are married or in a common-law partnership is exempt. Joint spousal bank accounts, joint spousal investment accounts, and joint spousal real estate held without a separate written trust agreement typically fall into this exemption.

Exemption 3 — Parent on title for a child’s principal residence. A common arrangement in Canada (especially in expensive markets like Toronto and Vancouver) is for a parent to co-sign a mortgage and be on title for an adult child’s principal residence. Bill C-15 proposes an exemption for this arrangement where (a) the property is the principal residence of the beneficial owner (the child), (b) the legal owner (the parent) is on title solely to facilitate financing, and (c) certain other conditions are met.

Exemption 4 — Spouse on title without contribution. Where one spouse contributed all the consideration for a property but title is registered jointly or in the name of the non-contributing spouse for family-law or estate-planning reasons, the proposed exemption applies.

Exemption 5 — Various professional or fiduciary arrangements. Property held by a lawyer in trust for a client during a real-estate or litigation matter, where the bare-trust nature is incidental to professional services, is typically exempt under the proposed rules.

The exemptions are proposed law, not enacted law, but the CRA has indicated it will administer consistently with the proposals. We recommend documenting the basis for relying on an exemption (a one-page memo to file is enough) so that if the CRA ever asks why the bare trust did not file, the answer is on paper.

Who does have to file for 2026 — the residual cases

If the bare trust does not qualify for an exemption, the T3 and Schedule 15 filing is required for taxation years ending on or after December 31, 2026. The most common scenarios that we expect will still require filing:

• Nominee corporations holding real estate for unrelated joint venturers. Pure non-related real-estate development bare trusts above $50,000 are the highest-volume residual case.
• Bare trusts holding investment portfolios above $50,000 where the beneficial owner is not the joint spouse. Parent-on-account for a now-adult child where the value is above $50,000 and the child is the beneficial owner — no spousal exemption applies.
• Trust arrangements in commercial joint ventures. Two unrelated businesses hold real estate or another asset through a nominee corporation.
• Family arrangements not explicitly covered by an exemption. Sibling-to-sibling nominee arrangements (e.g., brother holding title for sister) where the value is above $50,000 — no spousal exemption applies.

Filing requires Form T3 (the trust income tax and information return) plus Schedule 15 (the beneficial ownership disclosure), filed within 90 days of the trust’s December 31 year-end (or other tax year-end). Even where the trust has no income, the filing is required if the bare-trust filing requirement applies.

Penalty exposure and how Insight Accounting CPA approaches it

The penalty regime under section 162 of the Income Tax Act for non-filing of a T3 return when required is a base penalty of $25 per day, minimum $100, maximum $2,500 — and that is just the base. For gross negligence or knowing non-compliance, the penalty escalates to up to 5% of the highest fair market value of the property held during the year (with a minimum of $2,500).

For the 2024 and 2025 administrative-relief years, the CRA confirmed it will not assess penalties for non-filing of bare-trust T3s where the trust qualified for the relief. For 2026 and beyond, where filing is required and was not done, the penalty is back on the table.

Our approach for clients with bare-trust arrangements:

1. 2024 and 2025 returns. For arrangements that qualified for the administrative relief, no filing required. For arrangements where the CRA specifically requested a filing, comply with the request. Document our analysis to file.
2. 2026 returns onward. Identify which arrangements likely require filing under the proposed Bill C-15 rules. For arrangements that qualify for an exemption, document the basis. For arrangements that do not qualify, file the T3 and Schedule 15.
3. Historical exposure. For pre-2024 arrangements that should have been filed under the original (since-deferred) rules, the CRA has effectively waived the issue. We do not recommend voluntary disclosure for pre-2024 bare-trust non-filing.
4. Voluntary Disclosure Program. For any post-2026 non-filing identified after the fact, the VDP is the appropriate remedy. Acceptance into the VDP typically waives penalties and reduces or eliminates interest.

Action items for owner-managers and family-trust holders

If you have any of the following arrangements, schedule a 30-minute review with us in the next six months:

1. Parent on title for an adult child’s home, where the parent is not currently living there. Likely qualifies for the proposed principal-residence exemption, but the documentation matters.
2. In-trust-for investment accounts for minor children. Most are under $50,000 and exempt; check the balance.
3. Joint bank or investment accounts with a non-spouse relative. Likely above $50,000 in many cases and not covered by the spousal exemption. May require filing in 2026.
4. Numbered companies on title for real estate. Always check whether the underlying beneficial ownership requires a Schedule 15 disclosure.
5. Family or business arrangements where one party is on title or holding assets for another. The fact pattern matters.

For Bader’s existing clients, this review is built into the 2026 year-end planning cycle and you will be asked about these arrangements as part of the standard checklist.

FAQ — bare trust T3 filing 2026

Q: Do I have to file a T3 for my 2025 bare trust?

A: Not unless the CRA specifically requests one. The CRA confirmed administrative relief for bare-trust T3 filings for taxation years ending in 2024 and 2025.

Q: What is the $50,000 exemption?

A: A proposed exemption under Bill C-15 that exempts a bare trust from T3 filing where the gross value of all property held during the year did not exceed $50,000 at any time.

Q: My adult son lives in the house and I co-signed his mortgage and am on title. Do I have to file?

A: Likely not, under the proposed principal-residence exemption in Bill C-15, where you are on title solely to facilitate financing and the home is your son’s principal residence. Document the basis for relying on the exemption.

Q: I have a joint chequing account with my mother for emergency access. Is this a bare trust?

A: Possibly. Under the proposed exemptions, the arrangement may be exempt under the de minimis exemption if the balance stays under $50,000. The spousal exemption does not apply since the joint holder is a parent, not a spouse. We recommend documenting the arrangement.

Q: What is Schedule 15?

A: Schedule 15 is the beneficial ownership information schedule that, when bare-trust filing is required, must be filed with the T3 return. It identifies the trustees, the settlors, the beneficiaries, and any persons with the ability to control trustee decisions, along with their addresses, SINs or BNs, citizenship/residency, and dates of birth.

Q: When is the T3 due?

A: 90 days after the trust’s tax year-end. Most bare trusts use a December 31 year-end, so the T3 is due March 31 of the following year.

Q: What are the penalties if I miss a required filing?

A: Base penalty of $25 per day, minimum $100, maximum $2,500 for ordinary failure. For gross negligence, up to 5% of the highest property value during the year, minimum $2,500.

Case study — Mississauga family with multiple bare-trust arrangements

A Mississauga owner-manager client, mid-50s, with three potential bare-trust arrangements typical of the demographic the CRA’s enhanced reporting was originally aimed at.

Arrangement 1 — Adult child’s principal residence. Client co-signed mortgage and is on title for his 28-year-old daughter’s Toronto condo (purchased 2023 for $640,000). Client does not live there. The daughter pays the mortgage and is the beneficial owner.

Arrangement 2 — In-trust-for investment account. $38,000 mutual-fund account in client’s name “in trust for” his 14-year-old son. Used for future university funding.

Arrangement 3 — Joint investment account with sister. Brokerage account opened 2019 for estate convenience, currently $215,000. The sister is a co-holder for right of survivorship; the client funded the full balance.

First-year Insight Accounting CPA analysis:

1. Arrangement 1 likely qualifies for the proposed Bill C-15 principal-residence exemption (parent on title solely to facilitate financing; child’s principal residence). Documented a one-page memo to file establishing the basis for the exemption. No 2026 filing required, subject to the proposed amendments being enacted as expected.
2. Arrangement 2 qualifies for the de minimis exemption ($38,000 < $50,000 at all times during the year). Documented. No filing required. Flagged for re-assessment annually as the balance grows toward the $50,000 threshold.
3. Arrangement 3 does not qualify for any proposed exemption (non-spouse holder, well above $50,000). Required filing for taxation years ending on or after December 31, 2026. Set up Schedule 15 collection: trustees, settlor, beneficial owners, citizenship and SIN information. Filing will be prepared as part of the 2026 trust return cycle. Estimated cost: $850 per year.

Total fee for first-year bare-trust analysis and documentation: $1,500. Avoided penalty exposure on Arrangement 3 alone (5% of $215,000 = $10,750 ceiling) more than justifies the engagement. Composite case study — facts anonymized.

Closing — how to engage Insight Accounting CPA

If you are looking for a CPA who handles bare trust T3 filing Canada 2026 work end-to-end — analysis of exemptions, Schedule 15 preparation, and CRA correspondence — Insight Accounting CPA is set up to do exactly that.

If you have a bare-trust arrangement or are unsure, book a free 30-minute review at https://insightscpa.ca/free-consultation/. We will document your position, identify whether filing is required for 2026 and beyond, and prepare the T3 and Schedule 15 if needed. Bader A. Chowdry, CPA, CA, LPA is the engagement principal on every trust file.

Disclaimer

This article is provided by Insight Accounting CPA Professional Corporation for general informational purposes only. It is not tax, legal, or financial advice. Tax law is fact-specific and changes frequently. The proposed Bill C-15 amendments described above are proposed legislation as of May 2026 and may be modified before enactment. Always consult a qualified professional with respect to your own circumstances before acting. Insight Accounting CPA Professional Corporation is led by Bader A. Chowdry, CPA, CA, LPA — licensed by CPA Ontario under the Public Accounting Act, 2004.