CDIC Joint and Trust Disclosure By-law
For Guaranteed Investment Certificates (GICs) held in trust for two or more beneficiaries, the CDIC Joint and Trust Account Disclosure By-law requires that clients report annually by May 30th whether each beneficiary's interest in the deposit as at April 30th has changed or remained the same from the previous year. Providing us with this update is necessary to ensure that the trust deposit remains eligible for CDIC coverage separate from the CDIC coverage that applies to the clients' other deposits. As required by the CDIC By-law, Home Trust Company will be sending a notification during the month of April to all affected clients informing them of this requirement. Clients will be advised to contact their Advisor to provide the required information. Please capture the beneficiaries' information on the new form "Joint Trust Beneficiary Information Form" and forward the completed form to our back office.
As part of a Canada-U.S. tax treaty, Canadian financial institutions such as Home Trust are now required to assist in the implementation United States law known as the Foreign Account Tax Compliance Act (FATCA). A communication was sent to clients asking them to inform if they qualify as a U.S. taxpayer so that we can ensure we have the correct status on their records.