What taxes must an executor file for a deceased person in Ontario?
An executor must make sure the deceased's tax returns are filed and any balance owing is paid before distributing the estate. In practice that means a final (terminal) T1 return and, for the estate itself, a T3 return.
If death occurred between January 1 and October 31, the final T1 is due April 30 of the following year; if between November 1 and December 31, it is due 6 months after death. If the deceased or their spouse or common-law partner carried on a business, the due date is June 15 of the following year (death January 1 to December 15) or 6 months after death (December 16 to 31), though any balance owing is still due on the regular payment date.
The estate's T3 and any balance are due no later than 90 days after the trust's tax year-end. Before distributing, the executor should apply for a clearance certificate (Form TX19) once the returns are filed and assessed. Distributing without one makes the legal representative personally liable for unpaid tax, up to the value of the assets distributed.
Key takeaways
- The legal representative must make sure the deceased's tax returns are filed and any balance owing is paid before distributing the estate.
- The final T1 return is due April 30 of the following year if death occurred between January 1 and October 31, and 6 months after death if it occurred between November 1 and December 31.
- The estate's T3 return and any balance are due no later than 90 days after the trust's tax year-end, and a graduated rate estate can last up to 36 months after death.
- A clearance certificate (Form TX19) is requested only after the returns are filed and assessed, and distributing without one can make you personally liable for unpaid tax.