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The most common form of Trust is a testamentary trust that is created by a will and takes effect after the passing of the deceased. All income earned after an individual pass is reported to the Canada Revenue Agency through a Testamentary trust return. Such income includes:
Investment income (Interest and dividends)
Capital Gain Income (Sale of assets such as Shares or property)
Rental Income (from real estate owned by the deceased)
Business Income (Income earned from business after passing away)
Annuity settlements paid to the Estate
CPP death benefits
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