What Records to Keep After Filing a Deceased Person's Return in Canada

Once the final return is filed, it is tempting to close the folder and move on. But as the legal representative, you are usually the person the CRA will contact if it has questions, so the paperwork is worth keeping in order.

This article explains which records tend to matter, why some of them matter for a long time, and how to confirm how long to hold them in your situation.

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

Why the records matter

When someone dies, their legal representative is usually the executor named in the will (in Québec, the liquidator). The legal representative must notify the CRA of their role before accessing the deceased's tax records, and is responsible for ensuring returns are filed and balances owing are resolved. Good records make that work much easier to carry out.

The risk does not end when the beneficiaries are paid. Before distributing property, the legal representative must obtain a clearance certificate, and a representative who distributes without one is personally liable up to the value distributed, and the Minister may assess them at any time. That is a strong reason to keep a complete file.

What to keep

• A copy of the filed final T1 and the notice of assessment you receive for it
• Information slips such as T4, T5, T4A(P) and T4(OAS)
• Medical receipts, which must be attached to the return, and a note of which 24-month period you used
• Schedule 3 and Form T1255 if capital gains or a principal residence designation were reported
• Valuations or other support for the fair market value of capital property at death, since each capital property is deemed sold immediately before death
• T4RSP, T4RIF or similar slips for registered plans
• Records of any optional returns, such as the rights or things return marked 70(2)
• Proof of your authority: a legal document naming the executor or liquidator, such as the complete will or a court appointment, or the approved Form RC552

Records that matter for optional returns and splitting claims

If you used optional returns, keep a clear record of how deductions and credits were divided. The total of the claims cannot be more than what would have been allowed if only the final return were filed. Disability amount claims across all returns also cannot exceed the allowable amount for the calendar year.

Medical expenses can be split across returns, and donations can be claimed on the previous year's return if they exceed the limit on the final return. Keep a schedule showing what was claimed where, so a reviewer can follow it.

How long to keep them

The right retention period depends on the facts, including whether property was sold or distributed later, whether there are objections or relief requests open, and whether the estate files T3 returns. A T3 return is needed if the estate earns income after death or distributes property to beneficiaries.

A clearance certificate is only sought after all returns are filed and assessed, amounts owing are paid or secured, and nothing is outstanding under adjustment, objection, relief or appeal. A sensible rule is not to discard anything until that stage is complete. For the exact period that applies to you, confirm with the CRA, an accountant or a lawyer.

What to do next

• Gather everything into one file, on paper or digitally
• Label each claim on the return with the document that supports it
• Record where each optional-return claim was taken
• Keep correspondence with the CRA, including your proof of authority
• Ask an accountant or lawyer to confirm the retention period before you shred anything

Frequently asked questions