Tax Concerns

 

1. Is there any tax on the estate?  Seldom.  Under current tax estate laws, only financially larger estates will be taxed.  If you have any doubt as to your situation, contact an accountant.

 

2. Do I need to file a tax return for the deceased?  Yes.  If the deceased has earned taxable income in the year of his/her death, a tax return must be filed.  For help contact the District Tax Office, 1050 Notre Dame Ave, Sudbury Ontario, P3C 5C2 or at 1-800-959-8281.

 

3. If I pay for a funeral, is it considered a tax deduction?  No.

 

4.   Are you the legal representative?

 

• You are the legal representative of a deceased person if:

1. You are named as the executor in the Will
2. You are appointed as the administrator of the estate by a court.

As the legal representative, your responsibilities under the Income Tax Act include:

1. Filing all required returns for the deceased
2. Making sure all taxes owing are paid by the estate
3. Letting the beneficiaries know which of the amounts they receive from the estate are taxable

 

5. What is the due date for the final tax return and any balance owing?  You have at least six months before the deceased’s final income tax return is due to be filed.  The final return and any balance owing are 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

 

6. What do you do with the GST / HST credit?  GST / HST credit payments are issued in July, October, January and April.  If the deceased was receiving GST / HST credit payments, Revenue Canada may send out a payment after the date of death because Revenue Canada do not know about his or her death.  If this happens, return the payment to Revenue Canada.

 

 

7. What if the deceased’s GST / HST credit is for the deceased and his or her spouse?  If the deceased has a spouse, the surviving spouse may be eligible to receive GST / HST credit payments.  If the deceased’s GST / HST credit included a claim for that spouse, the spouse should:
1. Contact Revenue Canada and ask to receive any remaining GST / HST credit payments for that year
2. File an income tax and benefit return for the applicable previous year if he or she has not already done so.

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