Returning CPP or OAS Payments Received After Death in Ontario

A deposit from the government can land in a deceased person's account after the funeral, and it is easy to assume it belongs to the estate. Spending it is the mistake that causes trouble later, because some of these payments have to go back.

This article explains what the estate keeps, what must be returned, how to return it and who to notify. The steps below follow federal guidance. Your own situation may have extra details, so a lawyer or accountant can confirm the specifics.

Which payments the estate keeps and which go back

CPP and OAS benefits are payable for the month of death, and the estate is entitled to the payment for that month. Payments issued after the month of death must be returned. If a post-death payment has already been redeemed, it must be repaid.

If you are unsure which month a particular deposit relates to, ask Service Canada rather than guessing. Keep the bank statement showing the deposit with your records.

How to notify Service Canada

Notify Service Canada as soon as possible. The number shown by the government is 1-800-277-9914 within Canada and the United States, though numbers can change, so check the current one. You can also notify by mail.

Have the following information ready when you contact them:

• The deceased's full name and date of birth.
• The date and place of death.
• The deceased's marital status.
• The Social Insurance Number and last address.

Proof of death is only required if Service Canada asks for it. The sooner the report is made, the fewer payments are likely to be issued after death.

How to return payments

There are two ways to return post-death deposits. You can ask the bank to return them to the sender, or you can send a cheque in Canadian funds payable to the Receiver General for Canada.

Cheques received after the month of death go to the Returned Cheques unit, PO Box 2000, Matane QC G4W 4N5. Include the name and address of the estate or the representative.

• List every deposit received since the date of death, with dates and amounts.
• Identify which deposit, if any, is for the month of death.
• Ask the bank to return the later deposits, or send a cheque to the Receiver General for Canada.
• Mail any uncashed cheques to the Returned Cheques unit with the estate's or representative's name and address.
• Keep copies of everything you send and any confirmation you receive.

Avoiding repayment problems

Canada.ca advises the person handling the deceased's affairs to contact the CRA promptly to avoid repayment problems with benefits. In practice, that means reporting the death early, not spending money that arrives after the death and returning it quickly.

The estate also has tax filing duties. The final income tax return is generally due on April 30 of the following year for a death between January 1 and October 31, or six months after death for a death between November 1 and December 31. Ontario also lists filing a final income tax return among the executor's finance steps. An accountant can help if the deceased received several types of income.

If the estate has already paid bills from the account where the post-death money was deposited, tell the estate's advisers. The estate still has to repay the amount. The estate trustee's role includes paying taxes, bills and other debts and handling the assets responsibly, so it is better to know early about any shortfall.

What to do next

• Call Service Canada and report the death if you have not already done so.
• Check the account for deposits after the date of death and do not spend them.
• Return later payments by bank return or cheque to the Receiver General for Canada.
• Contact the CRA promptly about benefits.
• Note the final return deadline for the date of death.
• Ask a lawyer or accountant if the amounts are large or the estate's funds are tight.

Frequently asked questions