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It is recommended that you to use a lawyer who specializes in estate planning. The costs can range from $5000-$10,000 to set up. As long as you do not make any changes, the yearly cost to maintain your trust is the cost to file the separate trust tax return.
In these cases, all income (interest, dividends and capital gains) earned on these funds are taxed in the beneficiary's hands. If there is truly a trust arrangement, the trustee needs to ensure that an annual tax return is filed for the trust, if required.
Trusts must provide beneficial ownership information on a Schedule 15, filed along with a T3 return. These new reporting requirements are effective for taxation years ending after December 30, 2023 and subsequent tax years. This means that some trusts may have to file a T3 return for the first time.
A trust is considered a taxpayer in Canada even though it is not considered a legal entity. A trust pays tax at the highest personal marginal tax rate on its taxable income and doesn't have the benefit of individual tax credits.