This course covers tax issues surrounding family trusts, with a focus on complex tax planning opportunities and tax traps. Issues are discussed in both the inter vivos and testamentary context. The course will support participants to move from a compliance-based trusts practice to an advisory-based practice. The course highlights opportunities that may be available for trust structures as well as helps to identify issues with preparing returns.

This course covers tax planning for trusts and potential traps and technical challenges that may be encountered in the course of tax planning. This course offers a comprehensive analysis of the amendments to the Income Tax Act regarding tax on split income that came into effect in 2018, which is highly relevant to any practitioner who has a client with a family trust in its structure. Participants will learn how to identify potential issues with current client structures and future client structures being considered and be able to propose solutions.

Topics Include:

• Non-tax reasons for a trust 
• Tax traps 
• Tax planning 
• Estate planning 
• Determining trust income 
• Testamentary spousal trusts 
• 21-year rule 
• AMT issues
• Post-mortem tax planning 
• Audit-proofing your client  

NOTE: This course description has been revised and reflects updates for 2025. If you have any questions, please contact pdevents@cpaontario.ca.

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By the end of this course, participants should be able to:

• Identify tax and estate planning opportunities for clients with trusts or considering a trust.
• Analyze the computation of trust income.
• Explain issues and opportunities to clients.
• Identify instances where additional planning is required to avoid tax traps.