Closing a Deceased Person's Accounts and Subscriptions in Ontario

After a death there is a long tail of small accounts: credit cards, a phone plan, streaming services, memberships and online stores. Left alone they keep billing, and unpaid balances can grow while you are grieving.

This article gives a sensible order of steps for an Ontario estate trustee or family helper. It focuses on what you can do without cutting corners on your legal duties, and it flags where a lawyer should confirm the details.

Start with authority and a records folder

The estate trustee is the only person with legal authority to manage or distribute the estate, and a Certificate of Appointment gives the authority to manage its assets and pay its debts. Relatives who are not the estate trustee have no authority to withdraw money from the deceased's sole accounts. Companies will usually ask for proof of death and proof of authority, and what exactly they accept varies.

Before you cancel anything, set up a folder, paper or digital, for statements, account numbers, letters and notes of each call. Those records help with the tax filings and show that you handled the estate carefully.

Notify government agencies first

• Canada Revenue Agency: notify the CRA of the death as soon as possible, by phone or by mailing Form RC4111, Notify the Canada Revenue Agency of a Death, to avoid benefit repayments. Any CRA payment received after the death should be returned to the tax centre.
• CPP and OAS: these must be cancelled when the beneficiary dies. They are payable for the month in which the death occurs, payments issued after that month must be returned, and any already cashed must be repaid. Service Canada can be reached at 1-800-277-9914.
• CPP death benefit: for deaths on or after January 1, 2025, the basic amount is $2,500 plus a possible $2,500 top-up, up to $5,000 in total, and the executor should apply within 60 days of the date of death. The top-up is not paid if the deceased had ever received a CPP or QPP disability benefit, post-retirement disability benefit or retirement pension, or if a surviving spouse or common-law partner is eligible for a survivor's pension.

If there is no estate, or the executor does not apply, the CPP death benefit may be paid, in order, to the person or institution paying the funeral expenses, the surviving spouse or common-law partner, or the next of kin.

Cards, phone plans and subscriptions

Collect the last few months of bank and card statements and mailed bills, and list every recurring charge. Then work through the list, one company at a time:

• Stop using the deceased's cards. Do not charge new purchases to them.
• Contact each card issuer, give notice of the death and ask for the balance at the date of death and written confirmation of closure.
• Ask the phone or internet provider about closing the account or the terms for transferring it, and record any final bill. Keep the phone working until you have saved the data and codes you need.
• Cancel streaming, software and membership subscriptions, but first save any photos, files or emails you may need.
• Ask about refunds of prepaid amounts, and keep each cancellation confirmation.

Rules for how companies treat accounts after a death, and for how collectors may contact family, vary, and a lawyer can confirm your position if you are being pressed for payment.

How the debts are handled

Closing an account does not erase the balance. Unless the will says otherwise, debts and funeral and testamentary expenses are paid out of the residuary estate. Debts such as funeral costs, credit card debt and lines of credit cannot be deducted from the estate's value when calculating Estate Administration Tax. If the estate cannot pay everything, special rules apply, so do not pay some creditors in full until you understand the position.

A surviving spouse is generally not liable for the other spouse's debts, apart from debts the survivor signed for, such as joint debts or guarantees. There is one further rule: during cohabitation, a spouse can make both spouses jointly and severally liable to a third party for necessities of life, unless the other spouse has notified that third party that this authority is withdrawn. Check whether any card was joint or a guarantee, and how it was used, before assuming either way, and ask a lawyer if you are unsure.

What to do next

Keep the paperwork that supports taxes. The legal representative must file a final T1 return, and a T3 return may also be needed for the estate. The final return is generally due April 30 of the year after a death between January 1 and October 31, with different dates for deaths in November or December and for business income. Before distributing property, the legal representative must obtain a clearance certificate, or risk personal liability up to the value distributed. The certificate is requested on Form TX19 only after the returns are filed and the notices of assessment received.

• Confirm who the estate trustee is and gather proof of authority.
• Notify the CRA and Service Canada.
• Close cards and subscriptions in writing and keep confirmations.
• Do not distribute property until you have a clearance certificate.
• Ask a lawyer or accountant if anything is unclear.

Frequently asked questions