Bare Trust Reporting Rules: What Clients Need to Know for 2026

Do you share a bank account with a parent, hold property for a family member, or have your name on title for convenience? If so, the bare trust reporting rules may apply to you starting with the 2026 tax year. 

Meta description: Learn what a bare trust is, when the 2026 Canadian bare trust reporting rules may apply, common examples, filing deadlines, and possible penalties. 

What is a bare trust? 

A bare trust can exist when one person is listed as the legal owner of property, but someone else is the true owner. The person on title is usually just helping hold or manage the property for the real owner. 

Common examples include joint bank accounts, real estate held in someone else’s name, “in trust for” accounts, and property held for family or estate planning reasons. 

Example: parent and adult child on a bank account 

A common example is an elderly parent who adds an adult child to a bank account so the child can help pay bills or manage banking. 

If the parent still owns the money and the child is only on the account for convenience, this may be a bare trust. The parent would usually continue reporting the income from the account, but a trust filing may still be required. 

Are there exceptions? 

Not every bare trust needs to file. Some arrangements are excluded, and others may fall under a reporting exception. The answer depends on the details. 

For example, a filing may not be required where all legal owners are also the true owners, where the property is a qualifying principal residence arrangement between related individuals, or where the trust holds only a small amount of property throughout the year. 

One key exception is the $50,000 threshold. In some cases, a trust may not need to file if the total value of all property held by the trust was $50,000 or less throughout the entire year. 

Watch the value thresholds 

The value test applies throughout the year, not just at year-end. For example, if the account was over $50,000 at any point in 2026, the exception may not be available. 

What must be filed for a reportable bare trust? 

If a bare trust is reportable, it will generally need to file a T3 Trust Income Tax and Information Return and Schedule 15. 

For a December 31, 2026 year-end, the filing deadline is generally March 31, 2027. 

Penalties for missing a required trust filing 

Late filing penalties can apply. Even when no tax is owing, the penalty may be $25 per day, with a minimum of $100 and a maximum of $2,500. Larger penalties can apply in more serious cases. 

How to know if you may have a bare trust 

You may want to review your situation if you are listed on a bank account, investment account, real estate title, or other property for someone else’s benefit. 

The rules depend on who truly owns the property, who controls it, the value during the year, and whether an exception applies. 

Need help reviewing a possible bare trust? 

Bare trust reporting can be confusing, especially for family arrangements set up for convenience. If you are unsure whether the rules apply to you, contact our office before the deadline so we can help review the details.

This article is for general information purposes only and should not be considered tax, legal, or professional advice. We do not own the source information referenced in this article.