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 Medical Trust
A Medical Trust (MT) is a new hybrid plan combining the features of an Employee Life & Health Trust
(ELHT) and a Private Health Services Plan (PHSP). Note that the ELHT is a new type of inter-vivos trust
introduced into the Income Tax Act in the Federal budget earlier this year and will essentially replace
the Health and Welfare Trust (HWT).
The Medical Trust is an arrangement, established under the Income Tax Act, between an employer and its employees
where the employer agrees to provide one or more benefits for employees and/or their families.
Beneficiaries of the MT can be current, past, or retired employees, or a family member of such an employee.
To be considered a current or previous employee of the business, the individual must be receiving or
have received T4 income from the employer. The corporation makes tax deductible contributions to the trust
to reimburse the expenses incurred in providing the benefits.
Incorporated business should consider establishing a MT when:
(a) The company would like to pay and deduct premiums for insurance such as critical illness,
disability and wage loss replacement for owners and or employees.
(b) The company would like to offer and take deductions for employee health, medical, and dental benefits.
(c) The company would like to offer and take deductions for either, or both, applicable insurance premiums and medical,
health, dental benefits for retired employees.
For more information, email
us or contact us at 1-866-927-0111
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Medical Trust Resources
Important Change Highlights
The Medical Trust Advantage
Medical Trust Conference Call
Medical Trust
Setup Form
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