Cancelling Government Benefits After a Death: Ontario Executor Guide

After a death, government payments and cards do not stop on their own. As executor, one of your early jobs is to tell the programs the person dealt with, such as pension, health coverage and tax authorities, so that nothing keeps running that should not.

This guide explains how that job fits into your wider duties as estate trustee in Ontario. The rules and forms for each benefit program are set by that program, so confirm the current steps with the agency itself, or with a lawyer or accountant if the situation is unusual.

Why reporting a death promptly matters

Programs such as CPP, OAS and OHIP each keep their own records and have their own notification process. A death reported to one office is not necessarily reported to the others. Payments that arrive after the death may later have to be returned, so the sooner each program knows, the smaller the problem tends to be.

Exactly what each agency asks for, such as a death certificate, proof of your authority or a particular form, is set by that agency and can change. Ask each one what it needs before you send documents.

Your authority to act

A person named as estate trustee in a will does not have to act. Once you do act, the deceased's property, other than property passing by survivorship, vests in the personal representative as trustee, subject to payment of the deceased's debts.

Some agencies will deal with you on a death certificate alone. Others may want a certificate of appointment. Ontario's official guidance says probate is normally needed where the deceased owned real property or assets held by a financial institution, but not always. If you are unsure whether you need it, a lawyer can confirm.

The tax side of ending benefits

Government benefits are closely tied to tax. As legal representative, you must file all required returns for the deceased and make sure any balance owing is paid before distributing the estate.

An estate that earns income after death may also need a T3 trust return, which is due no later than 90 days after the trust's tax year-end.

Protecting yourself before you distribute

A clearance certificate confirms that the estate has paid all amounts of income tax. If you distribute assets without one and tax is owing, you are personally liable for the unpaid amounts, up to the value of the assets distributed.

Request it on Form TX19 only after the required returns are filed and assessed and taxes are paid or secured, not at the same time as the returns. The CRA acknowledges the request within 45 days, and the assessment can take up to 120 days. If the deceased had a GST/HST number, a separate Form GST352 is also needed.

What to do next

Work through the following in order, keeping a note of each call or letter.

• Order several certified copies of the death certificate.
• List every benefit, pension, card and plan the person received or held.
• Contact each program and ask what it needs and whether any payment must be returned.
• If the person rented, check the tenancy: where there are no other tenants, it is deemed terminated 30 days after the death.
• If the person rented, the landlord must preserve the deceased tenant's property (except unsafe or unhygienic items) until the tenancy ends and give the executor reasonable access to remove it; if the estate makes a claim within six months of death, the landlord must pay over net sale proceeds or return retained property.
• Gather income records and file the final return by the right date.
• Do not distribute until balances owing to the CRA are resolved.

Frequently asked questions