We have moved.
But not too far.

As of May 25,2019 our new address is:

802 13th Avenue SW
Calgary, AB T2R 0L2
Nothing else will change.

Intelligent, Practical Solutions

For 100 years, Ridout Barron has been dedicated to solving our clients' problems creatively and efficiently.

Practice

Subscribe

What taxes should be paid after a person dies?

“In this world nothing can be said to be certain, except death and taxes,” Benjamin Franklin once said. But even leaving this world for the next doesn’t mean taxes can be escaped. A person who has just died still has to pay taxes on what they have left behind.

As the deceased cannot pay the taxes, their legal representative must pay them from the assets of the deceased’s estate. The executor of the estate, or a court-appointed administrator if the deceased dies intestate, must calculate, file a final tax return, and then pay any outstanding taxes to the government.

The legal representative first notifies the Canada Revenue Agency and Service Canada of the date of the deceased’s death. If the deceased passed away between January 1 and October 31, the deadline for paying the taxes is April 30 of the following year. If the deceased dies in November or December, the taxes are due six months after the date of death.

The deceased’s estate must report:

  • The person’s income up to and including the date of death
  • The value of any financial assets such as mutual funds and other investments, as they are deemed to have been sold for their value on the date of death
  • Any income earned after the date of death

Government benefit cheques such as pensions, child benefits, and GST/HST credits must be returned.

When all this information has been compiled, the legal representative must prepare and file a final tax return for the estate. The legal representative may also file one or more of three optional returns that can reduce the tax the deceased has to pay.

When the CRA is satisfied all taxes owing have been paid, it can issue a clearance certificate. This certifies that the estate has paid all its taxes. The legal representative can then distribute the estate’s assets without risking being responsible for any taxes that the deceased might have owed the CRA.

Acting as a legal representative for a deceased’s estate can a challenging task. It is wise to consult an experienced estate lawyer for guidance about paying the deceased’s taxes.

Practice

Contact

Office

Ridout Barron
802 13th Ave SW
Calgary, AB T2R 0L2
Phone: 587-315-8454
Fax: 403-271-8016
Calgary Law Office Map

office-image

There is parking behind our building and/or free 2 hour street parking at our new location.

We Use Skype

skype

Social Media

Follow us on Facebook
Follow Us On LinkedIn