Here’s the truth: CRA doesn’t care if you’re downsizing, cashing out at the peak, or helping your kid buy their first place. If there’s a property sale involved, they want to know if you owe them a slice of the pie. My job? Help you figure out if that pie is all yours, or if Ottawa gets a fork too.
How Bare Trusts Show Up in Real Estate
Here are a few everyday examples:
Parents on Title for Financing
Sarah buys a condo. Her parents co-sign and get added to title so she can qualify for a mortgage. Sarah pays the bills, lives there, and makes every decision. Her parents? Trustees, plain and simple.
Investor Moves
Some investors put property titles under a corporation or nominee trustee. The trustee just holds the paper while the investor stays in control. In certain provinces, this setup can even dodge extra taxes when transferring ownership.
Partnerships & Joint Ventures
Two friends buy a property, but only one goes on title. A bare trust agreement says the titleholder can only act on instructions from both owners. Clean and simple.
Privacy Protection
Celebrities, politicians, or high-profile business owners might use bare trusts to keep their names off public land records. (Because no one needs paparazzi outside their driveway in Torbay.)