9 May 1991 Ruling 91M05183 F - T3 Return Proper Vehicle for Reporting Trust's Income and Allocation to Beneficiaries

By services, 18 January, 2022
Official title
T3 Return Proper Vehicle for Reporting Trust's Income and Allocation to Beneficiaries
Language
French
CRA tags
n/a
Document number
Citation name
91M05183
Severed letter type
Ruling
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
632993
Extra import data
{
"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1991-05-09 08:00:00",
"field_tags": []
}
Main text

Is a T3 return required to be filed where

-      a trust is not created by the deceased's will

-      the executor manages the estate for a short period of time (say to 7 months) until the estate is liquidated and

-      a T5 received by the executor representing the only source of income is sent directly to the beneficiaries with instructions to report their share of this income based on the provisions of the will.

Under the Income Tax Act, the estate is a trust and a T3 return, is the proper vehicle for reporting the trust's income and its allocation to the beneficiaries.