Trust returns are usually necessary when someone dies and leaves assets to be distributed to beneficiaries. The executor normally goes to a lawyer to gather and record the assets of the estate into a trust account.
This is done initialy to pay probate fees. For British Columbia with estate values between $25,000 to $50,000 probate fees are $208 + $6 per $1,000 over $25,000 and if estate values are $50,001 or greater $358 + $14 per $1,000 over $50,000. (eg $100,000 estate = $1,058 in probate fees.)
Once this is done a final return can be completed. A Trust Return is completed on revenue and capital gains from the date of death to the wind up of the trust. The number of Trust Returns will be determined by the length of time it takes to close the trust. Often this takes up to two years to complete.