Begin with the representative and timeline
Identify the legal representative and retain the documents needed to establish authority through the appropriate process. Assemble the date of death, previous returns, assessments, income sources and property information. Missing earlier returns should remain visible as separate items.
Record whether each amount relates to the period before or after death. Slips issued later may include more than one relevant period, and a bank deposit date alone may not explain its nature. Ask the issuer for supporting detail when the allocation is unclear.
Worked example: a later estate sale
Suppose an illustrative Ottawa estate file contains a supported date-of-death asset value of $310,000. The estate later sells the asset for $322,000 and pays $9,000 in selling costs. Net sale proceeds are $313,000, which is $3,000 above the recorded date-of-death value.
That comparison helps identify the post-death change requiring review. It is not automatically the taxable gain: the asset, applicable tax basis, transfers and other rules must be assessed. The person’s own pre-death tax consequences also require separate consideration.
Do not apply one deadline to every estate
CRA distinguishes the final return from optional returns and possible estate reporting. The applicable filing and payment dates depend on the circumstances, including when death occurred and any relevant business activity. A normal April personal deadline is not a universal estate calendar.
Prepare a list of possible returns and assign who will confirm each obligation and date. Complex valuations, elections, foreign assets or trusts require an appropriately scoped review. Organizing records should not be mistaken for deciding every legal and tax issue.
Plan the closing record before distributions
Keep the final and estate financial information, assessments, payments and unresolved questions together. CRA’s clearance-certificate guidance addresses the representative’s exposure when distributing property before relevant tax amounts are settled. Filing a return alone does not establish that the estate is ready for distribution.
Discuss clearance and distribution with the legal representative’s appropriate advisers and retain the resulting decisions. Our record-preparation role is to make the evidence and outstanding items clear. The general contact form should contain only a brief description, with sensitive estate documents shared later through the agreed process.
Put this into practice
Sources and current guidance
A practical next step
Bring the records you have.
We can identify missing documents, agree on the scope and organize the next tax preparation step.
Request a tax review