CRA: T1 Final Return
The final tax return for a deceased Canadian. Due 6 months after death or April 30 of the following year, whichever is later.
CRA: Final return →Stage · Estate planning in Canada
After death: executor and beneficiary
The stage nobody plans for. The executor faces months of paperwork: locating assets, filing multiple tax returns, probating the will, notifying creditors, distributing assets. The beneficiaries wait. Knowing the Canadian process in advance prevents costly mistakes.
What to do this week
- If you're executor: get original will, death certificates (order 8–10 certified copies), list of assets and debts, passwords for digital accounts. Apply for probate where required.
- Notify key institutions: banks, employer, CPP/OAS, provincial pension, life insurance, TFSA/RRSP issuers, CRA. Forward mail. Lock down credit to prevent fraud.
- File four possible returns: final T1 (year of death), rights-or-things return (optional), final partnership/business return, estate T3 return for post-death income. Each has different due dates.
- Request a Clearance Certificate from CRA BEFORE distributing to beneficiaries. Without it, the executor is personally liable for any tax later found owing.
- Distribute according to the will only after: clearance certificate received, all known debts paid, and the estate's cash runway is sufficient for final costs.
What to avoid
- Distributing assets to beneficiaries before the Clearance Certificate arrives. If CRA later finds tax owing, the executor pays personally.
- Missing the Graduated Rate Estate (GRE) 36-month window. An estate can use graduated tax brackets for 36 months after death; miss the wind-up deadline and the estate is taxed at the top rate.
- Paying executor compensation without court or beneficiary approval. Executor fees are regulated; taking undocumented amounts creates legal exposure.
- Ignoring digital assets. Crypto, online brokerage accounts, photo libraries, domain names all need explicit handling. Without access credentials, value is lost.
Calculators for this stage
Forms to file at this stage
CRA: Clearance Certificate (TX19)
Required before the executor can safely distribute the remaining estate. Executor personally liable for unpaid tax if distributed without clearance.
CRA: Form TX19 →Provincial probate application
Each province has its own probate process. Ontario: Form 74A. BC: estate grant application through the Supreme Court. Quebec: notarial wills skip probate; holograph wills require probate through the Chambre des notaires or Superior Court.
Frequently asked
How long does it take to settle an estate in Canada?
Typical range 9–18 months. Factors: province, whether probate is needed, complexity of assets, cooperation of beneficiaries, completeness of the will, speed of CRA's Clearance Certificate. Simple estates in Quebec or provinces with easy probate can close in 6 months; contested or complex estates can take 3+ years.
Do I have to probate the will?
Not always. Assets held jointly (with right of survivorship), named-beneficiary assets (TFSA, RRSP, life insurance), and assets held in trust usually skip probate. Real estate, bank accounts in the deceased's name alone, and non-registered investments typically require probate.
What's a Clearance Certificate, and why does the executor need one?
Form TX19 issued by CRA confirming the estate has paid all tax. Without it, the executor is personally liable if CRA later finds unpaid tax. Processing takes months; executors often wait to finalize distributions until it arrives.
Can beneficiaries dispute a will in Canada?
Yes. Grounds include lack of testamentary capacity, undue influence, improper execution, or failing to provide for a dependant. Each province has a specific statute (Succession Law Reform Act in Ontario, WESA in BC, etc.). Disputes typically delay estate settlement by 12–36 months.