Recent change – Deceased persons

When a loved one passes away, the family and legal representative have to ensure that legal formalities are complied with and deadlines met.

When a person dies, the legal representative is required to file tax returns for the year of death and any prior years for which the deceased had not filed a

All income for the period beginning January 1 to the date of death, inclusively, must be reported in the final and optional returns of a deceased taxpayer.

The deceased is deemed to have received the FMV of all property held in an RRSP or RRIF at the date of death. However, no amount is included in the deceased's

In general, refundable tax credits and amounts claimed as a refund of various taxes paid by the deceased prior to their death can only be reported in the

The legal representative is responsible for the administration of the estate while it is in the process of being settled, including the payment of debts and

A death benefit is an amount received from an employer following the death of an individual in recognition of employment services rendered. The beneficiaries

In Quebec, when an estate incurs a loss owing to the reimbursement of an amount included in the calculation of income from an office or employment of the deceased for a prior year, the legal representative may elect that such loss be deemed a loss incurred by the individual in the year of his death and not a loss of the estate.

The legal representative should obtain a clearance certificate or authorization before distributing the property. These certificates attest to the fact that the deceased's tax debts have been paid or the tax authorities have accepted security therefor.

In Ontario, a deceased's estate has to pay probate fees on the gross value of the deceased's property. The fees are equal to $15 per $1,000 over the first $50,000. With certain exceptions, an Estate Information Return must be filed with the Ministry of Finance within 180 days following the issuance of the Certificate of Appointment of Estate Trustee.