Executor Checklist for Months Two to Twelve in Ontario

The first weeks after a death are a rush of calls, arrangements and paperwork. By month two, most executors have a rough picture of the estate and are wondering what comes next, and in what order.

This checklist walks through the main filings, notices, tax steps and distribution milestones that usually fall between the second and twelfth month. Every estate is different, so treat it as a map rather than a substitute for advice on your own situation.

Where the early work ends and the longer work begins

Ontario's own executor checklist starts with filing the deceased's income tax return, telling banks and financial institutions about the death, contacting the Family Responsibility Office if support was being paid, and checking whether a will exists. If those are done, you are ready for the longer stretch.

It helps to keep your role in mind. The estate trustee winds up the deceased's affairs, pays taxes, bills and debts, collects the assets, and distributes the residue to those entitled. Someone named as estate trustee is not required to act, so if you are unsure you want the job, that decision comes before you take steps as executor.

A rough timeline for the year

The table below pulls together the main milestones. Dates run from different starting points, such as the date of death or the date the certificate is issued, so read the timing column carefully.

Probate and estate administration tax

Ontario says probate is not always required, but if the deceased owned real property or assets held by a financial institution, the estate normally has to be probated. The court document is a Certificate of Appointment of Estate Trustee or, for estates valued at $150,000 or less, a Small Estate Certificate. The estate trustee named in the will typically applies, though they may let someone else apply.

For certificates applied for on or after January 1, 2020, there is no estate administration tax if the estate is $50,000 or less. Above that, the tax is $15 for each $1,000 (or part) of value over $50,000, so a $240,000 estate owes $2,850. Value is measured as of the date of death and the tax is paid when the application is filed.

What counts toward the value matters. It covers assets owned at death such as Ontario real estate (less encumbrances), bank and investment accounts, vehicles and business interests. It excludes items such as CPP death benefits, RRSPs, RRIFs and TFSAs with beneficiary designations, and out-of-province real estate. Funeral costs, legal fees, loans and credit card debts cannot be deducted.

After the certificate is issued, the Estate Information Return goes to the Ministry of Finance within 180 calendar days and lists the value of the deceased's assets at death. The same 180-day rule applies to a Small Estate Certificate. If you later learn the return was wrong, an amended return is required within 60 days of becoming aware of incorrect or incomplete information, and within four years of the certificate. Failing to file, or making false or misleading statements, can lead to a fine of at least $1,000 and up to twice the tax payable, up to two years' imprisonment, or both.

Income tax filings during the year

The deceased's final T1 return is due April 30 of the following year if death was between January 1 and October 31, or six months after the date of death if death was between November 1 and December 31. A balance owing is due on the same date, and a late filing with a balance owing carries a penalty of 5% plus 1% for each full month late, up to 12 months.

If the deceased or their spouse or common-law partner carried on a business, the filing date is June 15 of the following year for deaths from January 1 to December 15, though the payment date does not change. For deaths from December 16 to December 31, the deadline is six months after death.

The estate itself may also file T3 returns. A T3 is due 90 days after the trust's tax year-end, a graduated rate estate keeps that status for up to 36 months after death, and the final return is due 90 days after the date of final distribution. A late T3 can also attract a separate penalty of $25 per day, with a minimum of $100 and a maximum of $2,500.

Before you distribute anything

A legal representative must obtain a clearance certificate before distributing property. If you distribute without one, you can be personally liable for the unpaid amounts, up to the value distributed.

CRA asks that you request the certificate on Form TX19 after filing the returns, receiving the notices of assessment and paying or securing all amounts owing, and not send it with the returns. CRA acknowledges within 45 days and the assessment can take up to 120 days. If the deceased had a GST/HST number, Form GST352 is also needed. Build that waiting time into your plan for the first-year distribution.

Property of the deceased generally vests in the personal representative as trustee for the people beneficially entitled, subject to payment of debts. The personal representative can use the power to deal with real property to distribute the estate as well as to pay debts. Real property not disposed of within three years of death may vest in the persons beneficially entitled.

What to do next

Work through the list below and keep every record. Records must be kept for four years.

• Confirm whether a certificate is needed and who will apply.
• Gather date-of-death values for each asset, and set aside items that are excluded from the tax value.
• Pay the estate administration tax when the application is filed.
• Diarize the 180-day Estate Information Return deadline from the date the certificate is issued.
• Diarize the final T1 date that matches the date of death.
• Ask about a T3 year-end for the estate if it will earn income.
• Request a clearance certificate only after assessments are received and amounts paid or secured.
• Talk to a lawyer or accountant before the first distribution, and about your own compensation, since a will that fixes pay or says you act without pay governs.

Frequently asked questions