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The final return is due April 30 of the next year or six months after the death, whichever is later. The legal representative files it, and most property is treated as sold at its fair market value on the date of death.
When someone dies in Canada, the legal representative, usually the executor, files a final return covering January 1 to the date of death. It is due April 30 of the following year, or six months after the death, whichever is later. Most property is treated as sold at fair market value on the date of death, and a clearance certificate protects the executor before the estate is paid out.
Who deals with the tax side?
The legal representative, usually the executor named in the will, files the final return and signs it. The CRA’s page on doing taxes for someone who died starts with telling the CRA about the death, then confirming who has authority to act, then preparing the returns. It also says the estate may be able to apply for the CPP death benefit, a payment of up to $2,500. Our executor tax checklist turns those steps into a list you can work through.
When is the final return due?
The final return covers January 1 to the date of death. It’s due on April 30 of the following year, or six months after the death, whichever is later. In practice that means April 30 for a death between January 1 and October 31, and six months after the date of death if it happened in November or December. The CRA lists both dates on its filing deadlines page. The filing guide covers the basics, and the article on the final tax return after death goes deeper.
What is treated as sold at death?
Most property is treated as sold at its fair market value on the date of death. There are exceptions: property left to a spouse can usually move without tax. RRSP and RRIF balances are generally taxed in the final return unless they pass to a spouse. Use the capital gains calculator for an estimate. If a house or registered account is part of the inheritance, read about an inherited house, RRSP and TFSA, and see how capital gains on inherited property work for the person who receives it.
Does the estate pay anything itself?
The estate may have its own returns, and some provinces charge a fee to administer it. In Ontario that’s the estate administration tax, which you can estimate with the estate administration tax calculator.
Why ask for a clearance certificate?
Because it protects you personally. Here’s the CRA’s wording:
A clearance certificate will allow you, as the legal representative, to distribute assets without the risk of being personally responsible for unpaid amounts.
Apply for a clearance certificate, canada.ca
So ask for it before handing anything to the beneficiaries.
What papers will I need?
Gather the slips, account statements and last return you can find. The document checklist is a decent starting point, the tax calendar keeps the dates in view, and the province index helps with provincial fees and rules.
This page is general information for a hard time, and it isn’t advice for any one estate. We don’t prepare returns or represent the CRA. Estates vary a lot by province, will and assets, so a lawyer, a qualified preparer or the CRA should confirm the details, and an official CRA letter takes priority over what you read here.
Frequently asked questions
When is the final tax return due?
April 30 of the next year, or six months after the date of death, whichever is later. Tax owing is due on that date too.
Who files it?
The legal representative, usually the executor named in the will, files the final return and any returns for the estate.
Is there tax when someone dies?
There can be. Most property is treated as sold at its fair market value on the date of death, with some exceptions, such as a spouse.
Do I need a clearance certificate?
Often, before you hand out the estate. It shows the CRA is satisfied that taxes are paid, and it protects the representative from later claims.
Is there a CPP death benefit?
The CRA says the estate or eligible individuals may be able to apply for the CPP death benefit, a payment of up to $2,500. Check the CRA page on doing taxes for someone who died for who qualifies.