If you are holding funds in a separate trust account for a client, perhaps as security for a builder’s lien, from an estate or trust distribution, or from the sale of real estate, you will now need to file a T3 income tax return, unless exempt, for that trust account by March 31, 2024. New rules in the Income Tax Act require T3 returns to be filed for many types of trusts for taxation years on or after December 31, 2023. Multiple T3 returns may need to be filed by a single law firm, taking considerable time to prepare. Read our previous Notice to Lawyers to learn more about the changes and exemptions.