What Happens to GST/HST Credit, CCB and OAS After Death in Canada

After a death, government payments can keep arriving for a while. Families often want to know what to keep, what to send back, and what the estate or a surviving spouse is owed.

This article walks through the main federal benefits in general terms. The details depend on the date of death and your family's situation, so an accountant or lawyer can confirm the specifics.

This article covers Canadian federal tax law, which applies in every province.

Start by notifying the CRA and Service Canada

To notify the CRA, phone Individual Tax Enquiries at 1-800-959-8281 or mail Form RC4111 to the tax centre. Do this as soon as possible to avoid benefit repayment, even if the person got no benefits.

Have the date of death, SIN or TTN, full name, date of birth, address and a tax document ready. CPP and OAS are cancelled separately through Service Canada at 1-800-277-9914, because the CRA notification does not cancel them.

The legal representative is usually the executor named in the will (in Québec, the liquidator). They must notify the CRA of their role before accessing the deceased's tax records, and they are responsible for ensuring returns are filed and balances owing are resolved.

To show that role, the CRA asks for a death certificate or funeral director's statement of death, and a legal document naming the executor or liquidator, such as the complete will or the court document appointing the representative. Each document must show the deceased's SIN, and processing generally takes 28 business days.

Canada Groceries and Essentials Benefit (formerly the GST/HST credit)

This benefit is paid on the fifth of July, October, January and April. If the recipient died before the scheduled payment month, payments stop for them and the estate.

If the recipient died during or after that month and the payment is uncashed, return it so the CRA can send it to the estate. A surviving spouse or partner who files may qualify based on their own net income, and payments covering both are recalculated.

Because the result turns on the date of death compared with the payment month, write down the exact date of death before you speak to the CRA. How this applies to a particular payment depends on your situation, so it is worth confirming with an accountant or lawyer.

Canada Child Benefit

If the surviving spouse or partner is the child's parent, the CRA usually transfers payments to them and recalculates without the deceased's net income. If someone else becomes primarily responsible for the child, they must apply through My Account or Form RC66. Payments received after the death must be returned.

When a child dies, CCB eligibility continues for 6 months after the child's death (starting in 2025) if the claimant is otherwise eligible. Entitlement to the Canada Groceries and Essentials Benefit for a deceased child ends the quarter after the date of death.

OAS, CPP and other payments

The estate is entitled to the OAS and CPP payment for the month of death. Payments issued after that month must be returned, or repaid if already cashed.

• A payment for the month of death can be reported on the final return or on an optional return.
• OAS and CPP/QPP for the month of death paid after death can qualify as rights or things, which may allow a separate optional return.
• Canada Workers Benefit eligibility runs only up to the date of death and is claimed for the final year on line 45300 of the final return.
• If the CPP/QPP death benefit is the estate's only income and no T3 is otherwise required, the beneficiary can report it on their own T1 for the year received.

A rights or things return is one of the optional T1 returns. It is not required and may reduce or eliminate tax, and it is marked "70(2)" at the top right of page 1. The legal representative can elect to file it by the later of one year after death and 90 days after the notice of assessment for the year of death.

If rights or things are transferred or distributed to beneficiaries before the election period ends, that election does not apply to them, and the beneficiary instead includes the amount in income when received. Whether a separate return helps depends on the numbers, so an accountant can confirm.

What to do next

• Call the CRA or send Form RC4111 promptly.
• Contact Service Canada to cancel CPP and OAS.
• Do not cash payments that arrive after the date they should have stopped; return them as instructed.
• Keep records of each payment received after death.
• A surviving spouse or partner should check their own benefit entitlement after filing.
• Ask an accountant or lawyer how benefit payments affect the final return and the estate.

Before the legal representative distributes property to beneficiaries, they must obtain a clearance certificate confirming the deceased's amounts have been paid or secured. If they distribute without it, they are personally liable up to the value distributed. The CRA says to apply for the certificate only after all returns are filed and assessed and amounts owing are paid or secured.

Frequently asked questions