Canada: Trusts

Between January 1, 2024 and December 31, 2026, business owners can access significant tax benefits when selling a qualifying business to an employee ownership trust ("EOT") pursuant to a transaction that constitutes a qualifying business transfer. Among other benefits, eligible vendors are entitled to receive a shared pool of up to $10 million in capital gains deductions (the "EOT Deduction").

In 2025, Prince Edward Island introduced a sweeping modernization of its trust legislation through Bill No. 5 –Trustee Act, replacing the longstanding Trustee Act (Chapter T-8).

Succession planning is not a one-and-done conversation for business owners. Much like the work of building the actual business, it is an ongoing, sometimes shifting, process.

This Advisory provides an overview of some of the key rules regarding the Canadian taxation of estates and testamentary and inter vivos trusts, including spouse, alter ego...

All Trustees, whether Estate Trustees or otherwise, have a duty to account to the beneficiaries on whose behalf a trust is being managed.

The Canadian Revenue Agency (CRA) has recently announced that bare trusts are not required to file T3 returns and Schedule 15 for the 2024 tax year, extending from a similar exemption for the 2023 tax year.

Bare trusts are a commonly used legal arrangement wherein the trustee holds legal ownership of assets on behalf of beneficiaries without actively managing or retaining control over those assets.

The right for a beneficiary to disclaim their interest under an estate is well-established in Ontario, traceable back to the original English courts of chancery...

Estate planning can be an overwhelming process. With so many options and so much information available, it can be difficult to know where to start.