Bare Trust 2026 Updates
This year, the Federal government released updates on the filing requirements regarding Bare Trust returns. Penalties for not filing the appropriate trust return are significant and Bare Trusts arrangements can be difficult to identify.
What is a Bare Trust?
A Bare Trust arrangement is often an informal agreement or agency relationship where the bare trustee holds title to the trust property as the beneficiary’s agent. The beneficiary, or beneficial owner, retains complete control of the property in trust.
Changes since 2023
The Federal government previously provided filing relief for Bare Trusts for the 2023, 2024, and 2025 tax years. For tax years ending on or after December 31, 2026, Bare Trusts must file a return within 90 days of year-end, with the first deadline falling on March 31, 2027. The return must include Schedule 15 to report the Bare Trust’s beneficial ownership information.
Current Reporting Examples
Below are some examples where a Bare Trust may exist and a return may need to be filed. Note that these are not ALL of the possibilities. Bare Trust arrangements can sneak up on you so please take a careful read and consider your specific situation.
There are general exemptions to certain categories, so please reach out if you have any questions.
Common examples include, but are not limited to:
Assets registered personally but owned by a corporation: A vehicle, license or other asset registered personally but owned by a corporation. Or a vehicle, license or other asset registered by the corporation but owned personally.
Parent on title of adult child’s home: A parent added to the title of an adult child's home or car solely to help with mortgage qualification, with no intention of owning part of the property.
Adult child on title of parent’s home: An adult child added to the title of the parent’s home for probate planning and the parent remains on title and still lives there.
Adult child on title of parent’s rental property: An adult child that holds sole title to parent’s rental property or cottage beneficially owned by parent.
ITF Account: An "in-trust-for" investment or bank account set up for a minor child or grandchild who cannot hold legal title themselves.
Joint account with parents: Being added to a joint account with your parents for convenience or estate planning.
Joint account as formality: A joint bank or investment account where one person is on title purely as a formality, but the funds and decisions belong to someone else.
Corporate nominee: A corporation holding legal title to real estate or other assets on behalf of the true owner(s).
Privacy arrangement: Arrangements used to preserve privacy or anonymity around the true owner of a property.
Partnership property: An individual is a general partner which files a T5013.
Transfer tax planning: Structures used to minimize provincial land transfer tax or fees where beneficial ownership changes hands, but legal title stays with the trustee.
Corporate reorganization: Nominee arrangements used to simplify the transfer or registration of property during corporate reorganizations.
Penalties
You may be subject to penalties if you do not file a trust return when you are required to do so. The late filing penalty is $25 per day, with a minimum of $100 and a maximum of $2,500.
An additional penalty may apply if you knowingly fail to file the trust return for the year or due to gross negligence. This penalty is equal to the greater of $2,500 and 5% of the highest amount at any point in the year of the fair market value of all property held in the trust.
Next Steps
If you think you have a Bare Trust agreement, please let us know and we can discuss if any trust return filings are required. Sooner is better here!
The above material is current as of September 29, 2026.
The information presented is a general overview and not intended to cover specific situations. You should consult with your professional advisors directly before taking any action.
Vertefeuille Rempel Chartered Professional Accountants LLP, its partners, employees and agents do not accept or assume any liability by anyone relying on the information presented.