When to prepare a T3 slip
As trustee, you have to fill out a T3 slip, Statement of Trust Income Allocations and Designations, for each resident beneficiary, including a preferred beneficiary, to whom the trust allocated income in the year. You must also do this for a trust that made any distributions of capital that would result in an adjustment to the adjusted cost base of the beneficiary's interest in the trust. If you allocated income to a non-resident beneficiary, read Column 2 – Non-resident.
This chapter provides information on how to fill out the T3 slip.
The T3 slip shows only the high-use boxes (boxes 12, 14, 16, 18, 21, 23, 26, 30, 32, 39, 49, 50, and 51). There are also generic boxes with blank codes for less common amounts. If you have to use a generic box, enter the box number and the amount in the other information area.
If you are reporting capital gains in Box 30, read the instructions for boxes 21, 30, 55, and 57.
If you need more than six boxes for the same beneficiary, use an additional T3 slip.
You do not have to fill out a T3 slip for a beneficiary if the income allocated in the year to that beneficiary is less than $100. However, you have to notify the beneficiary of the allocated income since it still has to be reported on the beneficiary's return.
You have to fill out a T3 SUM, Summary of Trust Income Allocations and Designations, even if you only prepare one T3 slip. This is the form you use to record the total of the more common amounts you reported on all related slips. File only one summary for the trust, unless it is a mutual fund trust.
Refer to the back of the T3 Summary for information on how to complete it.