Estate & Trust Tax Preparation

Estate & Trust Tax Preparation

You may find yourself in the role of trustee or an executor without preparation or during a stressful life event, like the death of a loved one. Chartered Professional Accountant at BBTS are here to help you understand how the tax law applies to your situation and give you peace of mind as you handle the affairs of the estate or trust.

Most executors know that completing a final tax return for the deceased is a core duty. But some are surprised to hear they may need to file a return for the estate itself—the T3 Statement of Trust Income.

An estate is considered a trust: an arrangement in which the trustee holds property for the benefit of one or more beneficiaries. A trust is not a separate legal entity but is considered a separate entity for the purposes of taxation in Canada. At the time of death of an individual, all his assets are considered to be deemed disposed and become part of his estate. As estate is considered a Graduated Rate Estate for a period of 36 months after the date of death.

For the purposes of taxation, a T3 trust return needs to filed for all estates and trusts resident of Canada.

Effective estate planning facilitates the orderly transfer of assets to your beneficiaries, provides security for your surviving family, and can reduce or eliminate the tax due on the transfer of your assets. A well-executed estate and trust plan will facilitate a well-organized transfer of assets. A poorly executed plan could have disastrous outcomes, with serious business costs. It’s absolutely essential for every business owner, regardless of business size, to ensure business continuity and succession of business ownership.

At BBTS, we can guide you through the complex process of getting your financial affairs in order and help you to design your estate in a way that protects your wealth while also ensuring that your business, and other assets, are transferred to your intended beneficiaries, with minimal tax liabilities.

How BBTS Can Help You

ECS has the expertise to properly prepare and file income tax returns for estates and trusts. However, tax returns are only one piece of the planning process. At ECS, our highly qualified CPAs will work with you to achieve and manage your financial goals while helping to develop a clear plan for today and beyond.

Our Chartered Professional Accountant has years of experience with tax returns for estates and trusts, which has enabled us to develop a trusted process that eases estate preparation. We stay up-to-date on the legislation, tax rulings, and other matters of interest that pertain to estate planning, helping you structure an estate plan that:

  • Provide a customized strategy that fits your objectives
  • Facilitates the orderly transfer of your assets
  • Analyze estate liquidity
  • Minimizes taxes levied on your donation bequests and estate
  • Maximize tax savings while balancing the financial needs of your family
  • Addresses tax issues connected to a trust
  • Determines rollover of property to beneficiaries or a trust