- Before distributing property under your control, the legal representative must obtain a clearance certificate, or risk personal liability up to the value of what was distributed.
- Apply on Form TX19 only after the returns are filed and assessed and the tax is paid or secured, and never send the request in with the returns.
- A certificate covers only property known when you asked for it, and it is generally not available if the estate cannot pay everything it owes.
If you are the executor or administrator of an Alberta estate, beneficiaries may be asking when they will be paid. Before you hand over anything, there is a federal tax step that many people only learn about late: the CRA clearance certificate.
This article explains what the certificate confirms, why it matters to you personally, when and how to apply, and what it does not cover. The certificate rules are federal and work the same way across Canada.
This article covers the law of Alberta.
What a clearance certificate confirms
A clearance certificate confirms that an estate, trust or corporation has paid the income tax, GST/HST, interest and penalties owed when the certificate was issued, or that the Minister has accepted security for them.
In plain terms, it is the CRA telling you that, as of that point, the estate's tax bill for the property you told them about is settled. That is what lets you distribute with more confidence.
Why it matters: your personal liability
Under Income Tax Act s. 159(2)–(3), before distributing property under their control, the legal representative must obtain a clearance certificate. If you distribute without one, you are personally liable for the amounts owing, up to the value of the property distributed.
This means unpaid estate tax can become your problem, not only the estate's or the beneficiaries'. Whether the risk is worth taking in a particular case is something to discuss with a lawyer or accountant before you distribute.
When and how to apply
The request is made on Form TX19, Asking for a Clearance Certificate, plus Form GST352 if the deceased had a GST/HST number.
Timing matters. Request the certificate only after the returns are filed and assessed and the taxes are paid or secured. Do not submit the request with the returns, as that delays assessment.
The returns usually involved are the deceased's final T1 return, which the legal representative files, and possibly a T3 trust return for the estate. Sales made by the estate after death are reported by the estate on a T3 return. Getting those filed correctly and on time comes first.
What to include with your request
The required documents include the following:
- The will and probate documents, or the administrator appointment
- A list of assets showing adjusted cost base and fair market value
- Statements of distributions made and proposed
The asset values link back to the final return, where the deceased is treated as having disposed of capital property at fair market value just before death. Keeping those figures consistent between the return and your request helps avoid questions.
Processing times and limits
The CRA sends an acknowledgement within 45 days, and assessment can take up to 120 days if all documents are provided. If you have no response within 120 days, contact the CRA.
| Point | What to know |
|---|---|
| Acknowledgement | Within 45 days |
| Assessment | Up to 120 days if all documents are provided |
| Newly found assets | A certificate covers only property known when requested, so another is needed before distributing them |
| Estate cannot pay | A certificate is generally not available if the estate cannot pay all amounts owed |
Because of these times, plan for a wait before any final distribution. Build that expectation into what you tell beneficiaries.
What to do next
- Confirm the final T1 return and any T3 return have been filed.
- Wait for the assessments and pay the tax, or arrange security.
- Gather the will, probate or administration documents, asset list and distribution statements.
- Send Form TX19, plus Form GST352 if there was a GST/HST number, separately from the returns.
- Hold off distributing the property until the certificate arrives.
If the estate is short of funds, or assets turn up later, speak with a lawyer or accountant before you distribute anything.
Frequently asked questions
Can I distribute some of the estate before I have the certificate?
The Income Tax Act requires the legal representative to obtain a clearance certificate before distributing property under their control. If you distribute without one, you are personally liable for the amounts owing, up to the value of what was distributed. A lawyer or accountant can advise on your situation.
Should I send Form TX19 in with the final return?
No. Request the certificate only after the returns are filed and assessed and the taxes are paid or secured. Submitting it with the returns delays assessment.
What if I find another asset after I get the certificate?
A certificate covers only property known when it was requested. If new assets are found later, you need another certificate before distributing them.
How long does the CRA take?
The CRA sends an acknowledgement within 45 days, and assessment can take up to 120 days if all documents are provided. If you hear nothing within 120 days, contact the CRA.
Sources
- CRA – What returns you need to file — canada.ca
- CRA – Filing and payment due dates — canada.ca
- Income Tax Act, s. 70 — Justice Laws (federal)
- CRA – Taxable capital gains on property, investments, and belongings — canada.ca
- CRA – Apply for a clearance certificate — canada.ca
- Income Tax Act, s. 159 — Justice Laws (federal)
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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