I recall that the Canadian foreign trust law requires tax and information filing compliance if a non-Canadian trust has a Canadian resident beneficiary.
I want to set up a trust which assets will be distributed when I die -- and one of the beneficiaries is a Canadian resident. Is there any way to accomplish this and legally avoid the Canadian compliance requirements at the same time?
If this is not the proper group, would appreciate if you know of a more appropriate group.
TIA
While not an expert on Canada law, I am not aware of any filing requirement for a non-Canadian inter vivos trust that has a Canadian resident beneficiary unless there is someone who is categorized as a connected person. I.e., someone who made a contribution to the trust while a Canadian resident or made a contribution within 60 months of moving into Canada or 60 months of leaving Canada.
See page 10 of the Canada T3 Trust Guide.
Thank you, Alan. I missed the "Connected Person" requirement. So I should have no problem then.
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