Program · Federal

Trusts (alter ego, joint partner, inter vivos, testamentary)

Legal structures holding assets for beneficiaries. Used for probate avoidance (alter ego / joint partner after 65), incapacity planning, blended families, business succession, and beneficiaries who need protection (minors, disabled).

Reviewed by Ben Stevenson, Managing Editor, Canadian Money Help Updated April 21, 2026 Methodology

Eligibility

Alter ego trust: Canadian resident 65+, single settlor
Joint partner trust: Canadian residents 65+, spouses/common-law partners
Other trusts: available to most Canadian adults for specific planning needs

Limits and rules

Setup cost typically $3,000–$10,000 through a lawyer
Annual T3 filing required for most trusts (bare trust filing paused 2024+)
Trust income taxed at top marginal rate unless distributed or flow-through
Deemed disposition of trust assets every 21 years for most trust types

Source

CRA: Trusts →