Canada: Trusts

A Lifetime Benefit Trust is one of the most powerful and underutilized estate planning tools available to Canadian families where a financially dependent beneficiary suffers from a mental infirmity.

In March 2024 the Canada Revenue Agency announced, days before the deadline, that bare trusts would not have to file a T3 return for 2023. That announcement was the beginning of a sequence rather than the end of one, and the rules have since been repealed, replaced, and brought back in a different form.

Explore recent legal insights and updates from Clark Wilson LLP, covering employment law changes, commercial lease renewals, business succession disputes, trust protection strategies, foreign influence registry requirements, and construction law developments. Stay informed on critical legal matters affecting businesses and individuals across Canada.

For Canadian tax planners and trust beneficiaries, the “21-year rule” is a critical milestone.

In Laberge Gareau v. Laberge Gareau, 2026 ONSC 4669, the Ontario Superior Court of Justice addressed an unfortunate dispute between a mother and her two daughters over ownership of the family farm. The court found that the mother remained the beneficial owner of the property when she registered it in trust for her daughters and that she never intended to give up beneficial ownership.

When parents die with minor children, who will care for them and manage their inheritance? This article explores six critical misconceptions about appointing guardians in Ontario, from temporary appointments to cross-border complications. Understanding these nuances ensures your estate plan truly protects your children when it matters most.

Canadian income tax law does not prohibit Canadian residents from using offshore entities or structures. What it does prohibit—explicitly and deliberately—is the deferral of Canadian tax on passive or investment income through foreign intermediaries.

The Ontario Superior Court of Justice examined whether a woman with diminished capacity required a court-appointed guardian to manage her substantial property holdings, or if less restrictive alternatives could protect her interests while preserving her autonomy. The case centered on balancing the state's duty to protect vulnerable persons against an individual's fundamental right to self-determination when making decisions about tens of millions of dollars in assets.

The Canadian government has proposed making the $10 million capital gains tax exemption for employee ownership trusts permanent in its Spring Economic Update 2026.