The legal representative is responsible for filing tax for a deceased person. Everything that belongs to that person when they die, property and debts are part of the estate.
When is the return due when you are filing tax for a deceased person?
CRA, Service Canada and Revenu Québec (if necessary) are all notified of the date of death. And send the appropriate documentation. When the person dies between the 1st of January and the 31st of October, the final tax return is due April 30th the next year. If they die between the 1st of November and the end of the year, the tax return is due six months later. Any taxes owing are due at the same time.
When someone passes away, the final return determines if the deceased person’s estate owes any income tax. Income tax pays out of the estate before anyone inherits, just like all other debts. You need the Notice of Assessment (NOA) from filing tax for a deceased person to settle the estate. And you need to get the clearance certificate so the property can be distributed.
A tax balance owing for the surviving spouse is still due on the 30th of April as usual. If that date is a Saturday, Sunday, or national public holiday, postmark it on or before the next business day.
Beneficiary or inheritor?
A beneficiary is named explicitly in a contract. They receive benefits from insurance, retirement plans, annuities, trusts or other types of contracts. Make your spouse the beneficiary of your retirement plan with your employer or your favourite nephew as the beneficiary of your life insurance policy. For Tax-Free Savings Account (TFSA) accounts, nothing needs to be reported but it may not be a TFSA anymore for the beneficiary.
The other people simply inherit your assets and may or may not have been specifically named in the will. There are inheritance tax laws in Canada that guide this process.
What if you receive cheques after they died?
Information needed for filing tax for a deceased person
- Income from all sources starting the 1st of January until the date of their death
- Check previous years’ tax returns, contact employers, trust companies, banks, pension plan managers and stockbrokers
- Information slips and documentation to show income and deductions
- Filing tax for a deceased person online
How to get Information from CRA or Revenu Québec
Provide the deceased’s social insurance number. And a copy of the death certificate. Plus the document proving you are their legal representative.
More information about filing tax for a deceased person
As their legal representative, you sign the tax return on the last page. Sign your name and your title (like executor or administrator).
Refer to CRA’s T4011 guide, Preparing Returns for Deceased Persons for more information. CloudTax Pro helps filing tax for a deceased person step-by-step, saving time and stress at this difficult time.