What to do when someone has died

Coping with the death of a loved one is difficult. CRA recognize that you are going through a very difficult time. With this in mind, CRA hopes that the following information will help you by answering some questions you may have.

On the final return, report all of the deceased’s income from January 1 of the year of death, up to and including the date of death. Report income earned after the date of death on a T3 Trust Income Tax and Information Return.

Generally, the final return is 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 or common-law partner was carrying on a business in 2009 (unless the expenditures of the business are mainly in connection with a tax shelter), the following due dates apply:

Period when death occurred Due date for the return
January 1 to December 15 June 15 of the following year
December 16 to December 31 Six months after the date of death

Clearance certificate

As the legal representative, you may want to get a clearance certificate before you distribute any property under your control. A clearance certificate certifies that all amounts for which the deceased is liable to us have been paid, or that we have accepted security for the payment. If you do not get a certificate, you can be liable for any amount the deceased owes. A certificate covers all tax years to the date of death. It is not a clearance for any amounts a trust owes. If there is a trust, a separate clearance certificate is needed for the trust.
For more information, go to: http://www.cra-arc.gc.ca/tx/ndvdls/lf-vnts/dth/menu-eng.html.