Notifying Government and Cancelling Benefits After a Death in Ontario

After a death, an executor has a long list of notices to send. Some are urgent because payments keep arriving and may have to be repaid.

This article walks through the main federal and Ontario notices and the CPP death benefit. Your situation may need more, so a lawyer can help confirm what applies.

Federal notices and CPP and OAS payments

• Service Canada: call 1-800-277-9914 with the deceased's Social Insurance Number, or write to a Service Canada office, to cancel CPP and OAS.
• CRA: contact them as soon as possible to avoid repayment of benefits.
• Passport Program: return a valid passport with a copy of the death certificate.
• Canada Post: ask to forward the deceased's mail.
• Credit bureaus: notify Equifax and TransUnion to guard against identity fraud.

For a death in a Canadian province, the provincial vital statistics agency automatically notifies the SIN program. If the death was in a territory or outside Canada, the family or estate must inform the SIN Program.

The estate keeps the deceased's OAS and CPP payments for the month of death. All payments issued after that month must be returned.

The executor or their lawyer also contacts the CPP and OAS/GIS programs about cancelling benefits and any survivor benefits.

The CPP death benefit

The CPP death benefit is a basic amount of $2,500 plus a possible top-up of $2,500, for a maximum of $5,000. The executor named in the will, or the administrator appointed by the court, applies, and should do so within 60 days of the date of death.

The deceased must have contributed to the CPP for at least one-third of the calendar years in their base CPP contributory period (but no less than three calendar years), or for at least 10 calendar years.

If there is no estate, or the executor has not applied, it can be claimed in order of priority by the person or institution that paid or is responsible for paying the funeral expenses, then the surviving spouse or common-law partner, then the next of kin.

Ontario notices

ServiceOntario must be notified to cancel the deceased's driver's licence, accessible parking permit, Ontario health (OHIP) card and outdoors card. An accessible parking permit must be returned to ServiceOntario within 30 days. A driver's licence fee refund is claimed at a ServiceOntario centre with the Application for Refund of Driver's Licence Fee.

For ODSP, when a single recipient dies, ODSP pays the final month for full shelter and basic needs, less any overpayment recovery. A deceased spouse's 50% share of a split overpayment may be recovered from the estate's assets.

Vehicles and licence plates

A vehicle may be transferred to a beneficiary of the estate exempt from retail sales tax, if supporting estate documents are provided. With a will, this is the will naming the estate trustee and beneficiary, or a Certificate of Appointment of Estate Trustee or Small Estate Certificate plus a trustee letter giving the VIN, year, make and model. Without a will, it is a trustee letter with a Certificate of Appointment of Estate Trustee without a Will or a Small Estate Certificate, or a lawyer's letter.

If a vehicle is jointly registered to legally married spouses and one dies, the survivor can transfer it exempt from retail sales tax with only a death certificate (or a certified copy). In all other joint-ownership cases, including common-law spouses, the surviving owner must provide the estate documents to show they are the legal beneficiary before the vehicle can be transferred exempt.

When a vehicle is registered to a new owner at ServiceOntario, proof of Ontario vehicle insurance is required. Licence plates may be transferred only between spouses, parents and children, using a plate transfer declaration. Other steps depend on the situation, so it is worth confirming them at ServiceOntario.

Tax clearance before you distribute

Before distributing any property, the legal representative of a deceased taxpayer must obtain a certificate from the Minister confirming that all tax amounts have been paid or that security for them has been accepted. A legal representative who distributes property without the certificate is personally liable for the unpaid tax amounts, up to the value of the property distributed, and the Minister may assess them at any time.

The certificate is requested on Form TX19, "Asking for a Clearance Certificate", after the required returns are filed and assessed and all income taxes are paid or secured. An estate with a GST/HST number also needs Form GST352 for clearance. How much to hold back depends on the facts, so it is worth confirming with a lawyer or accountant.

What to do next

• Order several certified copies of the death certificate.
• Call Service Canada and the CRA early.
• Apply for the CPP death benefit within 60 days if eligible.
• Notify ServiceOntario and return the parking permit within 30 days.
• If the person received ODSP, ask about any overpayment recovery.
• Keep a log of each notice, date and reference number.

If you are unsure whether you have authority to act yet, a lawyer can explain what you can do before an appointment is in place.

Frequently asked questions