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Are testamentary trusts taxed favourably?

Not since 2016. Most are taxed at the top marginal rate; a graduated rate estate and a qualified disability trust are the exceptions.

This is legal information only. For advice on your own circumstances, speak to a lawyer.

Not since 2016. Most are taxed at the top marginal rate; a graduated rate estate and a qualified disability trust are the exceptions.

The Canadian position

Not since 2016. Most are taxed at the top marginal rate; a graduated rate estate and a qualified disability trust are the exceptions.

Provincial law governs administration, so confirm the position where the estate will actually be administered.

The Islamic position

The fixed shares apply to the net estate after funeral expenses, debts and any bequest capped at one third.

Where a Canadian mechanism has no classical counterpart, treat it as a contemporary question for a qualified scholar.

Note

This is legal information only. For advice on your own circumstances, speak to a lawyer.

Citations & sources

Every factual claim on this page traces to a source below. Details change — check the original source before relying on any figure, fee or legal position. Anything under “further reading” is related material, not a source for what is stated here.

Canadian legislation & government
  1. T3 Trust Guide — Canada Revenue Agency
  2. What to do when someone has died — Canada Revenue Agency
  3. Income Tax Act, RSC 1985, c 1 (5th Supp) — Justice Laws Canada
Further reading — Treadstone Law
  1. Why most trusts pay top tax rate canada — Treadstone Law
  2. Qualified disability trust eligibility — Treadstone Law
  3. Henson trust vs qualified disability trust ontario — Treadstone Law
  4. Graduated rate estate deemed disposition planning ontario — Treadstone Law
  5. Wills & estates practice — Treadstone Law