Land Owner Transparency Act Reporting for Trusts in BC

If you are a trustee holding British Columbia real estate, you may have heard that a transparency report must be filed with the Land Owner Transparency Registry. How the Land Owner Transparency Act applies to a trust depends on its wording and on your facts, so it is worth confirming with a lawyer.

Because trustees hold title for others, the question of who counts as a beneficial owner matters. This article explains how to approach it, how it differs from federal trust reporting, and what to gather before you speak to a lawyer.

This article covers the law of British Columbia.

Why trusts raise transparency questions

A trustee is the registered owner on title, but the benefit of the property belongs to others. A transparency regime is concerned with that gap between the name on title and the people who benefit or control.

Whether a particular trust must file, who must be named and which trusts are exempt depend on the Act's definitions and on the trust's terms. These are not points to guess at. Read the current Act and registry guidance, or have a lawyer confirm how they apply to your trust.

Identify what kind of trust you have

The type of trust is the first fact to pin down. A testamentary trust is generally created on and as a result of an individual's death, and an inter vivos trust is any trust that is not testamentary.

Knowing which category you are in helps you ask the right question about who the beneficial owners are, since a bare trust, a family trust and an estate may be treated differently.

Related trust reporting you may already know

Separate from any provincial land filing, federal trust returns require beneficial ownership information. A T3 return must be filed no later than 90 days after the trust's tax year-end, which is March 31 for a December 31 year-end.

Failing to include the specified information on the reportable entities of the trust, which is the Schedule 15 information, may result in a late-filing penalty.

For bare trusts, the CRA does not expect a T3 return with Schedule 15 for 2025 year-ends, but certain bare trusts may have to file for taxation years ending in 2026 and later, based on proposed Bill C-15 legislation. A federal filing position does not answer the provincial land question, and the reverse is also true.

Land Title Office points for trustees

• Land transferred to two or more people is held as tenants in common unless a contrary intention appears, but this default does not apply to personal representatives or trustees.
• The online application to transmit ownership to a surviving joint tenant needs a legal professional if any owner on title is a corporation, trust trustee, or limited partnership partner.
• Property transfer tax exemption code 09 covers a transfer to the deceased's personal representative where the property is part of the estate.
• Code 40 covers a principal residence transferred from a deceased's estate to a beneficiary who was a related individual of the deceased, and it may not be a full exemption if the property exceeds 0.5 hectares or is not residential.

How any transparency filing fits with these registration and transfer steps depends on your situation, so it is worth confirming with a lawyer. Check the sequence with your lawyer so a transfer or registration is not delayed.

What to do next

• Get a current title search for each BC property and note every registered owner.
• Find the trust deed or will and list the settlor, trustees and all beneficiaries.
• Note whether the trust is testamentary, inter vivos, an alter ego or joint partner trust, or a bare trust.
• Record any person who can direct the trustee or receive income or capital.
• Ask a lawyer to confirm whether a transparency report is needed and who must be named before you register, transfer or sell.
• Keep your T3 filings in order. Separately, executors, administrators, testamentary trustees and judicial trustees must generally obtain a court order passing their first accounts within 2 years of the grant or appointment, unless all beneficiaries approve the accounts in writing or the court directs otherwise.

Frequently asked questions