Finance official indicates that the U.S. was informed in the FATCA negotiations of Canada’s view that estate planning trusts are excluded

A Finance official indicated that, in the course of the negotiations of the IGA with the U.S., the US tax authorities were informed of the Canadian government’s position that personal trusts used for estate planning purposes and not seeking to raise external capital are excluded from the FATCA reporting requirements for Canadian financial institutions. Finance considers that the Canadian legislation in this regard is compatible with the "financial institution" definition in the IGA.

Neal Armstrong. 7 October 2016 APFF Financial Strategies and Instruments Roundtable, Q.10.