What to Do Following a Death (Back)

Coping with the death of a loved one is difficult. We recognize that you are going through a very difficult time. With this in mind, we hope we can help you by answering some questions you may have.

With our friendly and competent service at your house we will:

All Assets owned by an individual are deemed to have been disposed of at fair market value on the day of death. Estate planning can minimize tax consequences at death by implementing specific tax deferral measures prior to death.

This page contains basic information that the family and legal representative should know to start settling the affairs of the deceased person. For more detailed information you can check this additional page or call us at 905-634-5605. In most instances you do not need to call a lawyer to prepare the last tax return and to apply for benefits. If necessary, you can even probate by yourself the deceased's will. A lawyer will charge a fee proportional to the value of the estate for this simple task. This fee might be thousands of dollars.

What should you do first?

Call Burlington Tax Services (905-634-5605) and ask for our advice. Then you should provide CRA (Tel. 1-800-959-8281) with the deceased's date of death as soon as possible if any of the following situations apply:

• the deceased was receiving the goods and services tax/harmonized sales tax (GST/HST) credit;
• the deceased or the deceased's spouse receives Canada Child Tax Benefit (CCTB) payments for a child; or
• the deceased was a child for whom CCTB payments are paid.

Arrangements may have to be made to stop these payments and, if applicable, transfer them to a survivor.

Was the deceased paying tax by installments?

If the deceased person was paying tax by installments, no further installment payments have to be paid after his or her death. The only installments required are those that were due before the date of death, but not paid.

What do you do with the GST/HST credit?

GST/HST credit payments are issued in July, October, January, and April. If the deceased was receiving GST/HST credit payments, CRA may still send out a payment after the date of death because CRA is not aware of the death. If this happens, please return the payment to CRA by mail.

What if the deceased's GST/HST credit is for the deceased only?

If a single person dies in a month before CRA sends a GST/HST credit payment, no one else can receive the payment.

If a single person dies during or after a month in which CRA sends a payment, the person's estate is entitled to that payment.

What if the deceased's GST/HST credit is for the deceased and his or her spouse?

If the deceased had a spouse, the surviving spouse may be eligible to receive GST/HST credit payments. If the deceased's GST/HST credit included a claim for that spouse, the spouse should:

• contact us and ask to receive any remaining GST/HST credit payments for the year; and
• file an income tax and benefit return for the applicable previous year if he or she has not already done so.

Note

If the deceased was receiving the Newfoundland harmonized sales tax credit (NHSTC), which is issued in October and administered by CRA, you need not take any further action. CRA will use the information provided for the GST/HST credit payments to adjust the NHSTC.

What do you do with the CCTB payments?

What if the deceased was receiving CCTB?

If the deceased person was receiving CCTB payments for a child and the surviving spouse is also the child's parent, the surviving spouse should contact us and provide us with the date of death. The CCTB payments will be transferred to the surviving spouse.

If the child's new caregiver is someone other than a parent (for example a grandparent or a guardian), that person will have to complete and submit Form RC66, Canada Child Tax Benefit Application, to request CCTB payments for the child. You can get Form RC66 from your tax services office.

Note

If the deceased was receiving payments under provincial or territorial child and family benefit programs administered by Revenue Canada, there is no need to apply separately to qualify. CRA will use the information from the CCTB application to determine the new caregiver's eligibility for these programs.

What if the deceased's spouse receives CCTB?

If you are the surviving spouse and you receive CCTB payments for a child, you can request that CRA recalculates the payments excluding the deceased person's income. Use the form below to make the request.

What if the deceased is an eligible child?

Entitlement to CCTB payments for a deceased child stops the month after the child's date of death. Please notify us so that CRA can update our records.

How do you contact Revenue Canada?

If you need help or would like any of CRA publications, call CRA. Their telephone number is 1-800-959-8281

Are you the legal representative?

You are the legal representative of a deceased person if:

• you are named as the executor in the will;
• you are appointed as the administrator of the estate by a court; or
• you are the liquidator for an estate in Quebec.

As the legal representative, your responsibilities under the Income Tax Act include:

• filing all required returns for the deceased;
• making sure all taxes owing are paid; and
• letting the beneficiaries know which of the amounts they receive from the estate are taxable.

If you are the legal representative, you may need information from the deceased person's tax records. Before CRA can give you this information, CRA will need the following:

• a copy of the deceased's death certificate;
• the deceased's social insurance number; and
• a copy of the will or other document that shows you are the legal representative.

You should also provide your address so that CRA can reply directly to you. Send this information to your tax services office or tax centre.

What is the due date for the final tax return and any balance owing?

You have at least six months before the deceased's final income tax return is due to be filed. The final return and any balance owing are due on or before the following dates:

Period when death occurred Due date for the return

January 1 to October 31 April 30 of the following year

November 1 to December 31 Six months after the date of death

If the deceased or the deceased's spouse was carrying on a business during the year when the death occurred, special rules apply, unless the expenditures of the business are primarily in connection with a tax shelter. Get the guide called Preparing Returns for Deceased Persons for more information.

If you file the final return late and there is a balance owing, CRA will charge a late-filing penalty. If you do not pay any balance owing from the final return in full by the due date, CRA will charge interest on the unpaid amount. The interest will start to accumulate from the day after the return is due to be filed to the date you pay the amount owing.

Previous year return

If a person dies after December 31, but before the filing due date for his or her return (usually April 30), and that person had not yet filed a return for the previous year, the due date for that return is six months after the date of death.