How Do I Get a Tax Refund Owing to a Deceased Person in BC?

When someone dies, a tax refund or credit may still be owed to them. Family members often ask how to collect it and who is entitled to it.

This article explains who deals with the CRA, how the final return fits in, and what happens to credits and benefits. Who ultimately receives the money depends on the will and the estate, which a lawyer can confirm.

This article covers the law of British Columbia.

Who deals with the CRA for the deceased

The legal representative of a deceased person is typically the executor named in the will. If there is no will or executor, a person can be appointed through the courts, or can register with the CRA using Form RC552.

The Form RC552 approval is for CRA purposes only. It covers CRA matters only, not other estate duties.

The final return is the starting point

The legal representative must file the final return for the year of death, and any returns the deceased had not filed for earlier years. The final return reports all of the deceased's income from January 1 of the year of death up to the date of death. Whether a refund results depends on what that return and any earlier returns show.

For a death from January 1 to October 31 with no business, the filing date depends on your situation, so it is worth confirming with a lawyer. If the person died between November 1 and December 31, the final return is due 6 months after the date of death, on the same calendar day of the month as the death, and any balance owing is due on that date too. If the deceased, or a spouse or common-law partner living with them, was carrying on a business, the final return for a death from January 1 to December 15 is due June 15 of the year following the death, and for a death from December 16 to December 31 it is due 6 months after the date of death. The business dates do not apply where the business's expenditures were mainly the cost or capital cost of tax shelter investments. Even where the business filing date is June 15, any balance owing is still due on the regular payment due date, which is April 30, or 6 months after death for deaths in November or December, and interest accrues from the day after that date.

Credits and benefit payments

The legal representative must notify the CRA of the death and cancel or transfer benefit payments such as the GST/HST credit, Canada Workers Benefit and Canada Child Benefit. The CRA asks you to notify it as soon as possible to avoid benefit repayment.

• Canada Workers Benefit advance payments run only to the date of death, and the final-year benefit is claimed on line 45300 of the final return.
• Canada Child Benefit usually transfers to a surviving parent-spouse, otherwise the new primary caregiver applies.
• For the Canada Groceries and Essentials Benefit and Canada Carbon Rebate, if the person died before the scheduled payment month, payments are no longer issued in that person's name or to the estate.
• If the person died during or after that month and the payment was not cashed, it must be returned to the CRA.

Income earned after death

Income the estate earns after death may have to be reported on a T3 Trust Income Tax and Information Return. An estate may not need to file a T3 if it is distributed immediately after death or earned no income before distribution.

What to do next

• Confirm who the legal representative is, and whether a court appointment or Form RC552 is needed.
• Notify the CRA of the death and ask about any pending refunds or credits.
• Gather the deceased's notices of assessment and records of benefit payments.
• Note the filing deadline that applies based on the date of death.
• Ask a lawyer or accountant who is entitled to any refund under the will and the estate.

Frequently asked questions