What is a trust’s 21-year tax anniversary?
A Trust's 21-Year Anniversary: Prepare Early. Understand the Canadian tax rules, records to gather and practical next steps before preparing your return.
Request a quote →Arsen Accounting Services · Prepared October 29, 2026
Trust and estate reporting: 10 T3 questions · Browse the 100-article collection
The direct answer
Many trusts face a deemed disposition of relevant property after 21 years, with exceptions and different triggering dates for certain trust types. Tax can arise without an actual sale. The relevant anniversary must be calculated from the trust’s own history, not simply the beneficiary’s age. Planning close to the date can leave little time to evaluate lawful options.
Establish the relevant anniversary
Find the trust deed, creation date and any earlier event that affects the deemed-disposition timeline. Do not calculate the date from a beneficiary's age or the year a bank account opened without checking the trust's history. The applicable rule can differ by trust type, so the legal documents and prior tax records are the starting point.
Allow time for valuations and advice
An anniversary review may need asset values, cost information and consideration of available lawful options. Gather those records well ahead of the date rather than waiting for the annual T3 appointment. Keep legal and tax advice coordinated. A last-minute transfer should not be assumed to solve the issue without reviewing its conditions and consequences.
What to gather before the review
- Trust deed, amendments and creation history
- Asset costs and current valuation information
- Prior deemed dispositions and relevant elections
Does the rule require the trust to sell everything?
A deemed disposition is a tax concept and can arise without an actual sale. The trustee should review the applicable consequences and options rather than assume either a forced sale or no tax issue.
Your next step
Find the signed trust deed, creation date, prior deemed dispositions and current asset values well in advance.
Related reading
Official sources
T3 Trust Guide – 2025 · T1055 Summary of Deemed Dispositions (2002 and later tax years)
Sources checked for this collection on October 28–29, 2026. Annual forms may refer to a specific tax year. Use the rules and limits for the year being filed. General information; eligibility, elections and deadlines depend on the facts. No deduction or tax saving is guaranteed.
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