CRA confirms that T1142 reporting requirements can arise once a foreign estate has been fully administered

S. 233.6(1) provides that foreign reporting (on Form T1142) is not required for a distribution from a foreign trust where the distribution is from an estate that arose as a consequence of the death of an individual.

CRA confirmed its position that once the estate has been administered, the Canadian beneficiary of any ongoing non-resident testamentary trust is required to file a T1142 in any year where a distribution is received from a trust, or where a Canadian beneficiary becomes indebted to the trust. Generally, an estate is considered to be fully administered when the assets in the estate have been distributed and, if applicable, a clearance certificate is requested.

Neal Armstrong. Summary 20 June 2023 STEP Roundtable, Q.17 under s. 233.6(1).