tag:blogger.com,1999:blog-436024129575354145.post7102557948311909166..comments2024-03-28T12:41:21.857-07:00Comments on Estate Law Canada: Should an executor get a tax clearance certificate?Lynne Butler, BA LLBhttp://www.blogger.com/profile/09790353197833765108noreply@blogger.comBlogger35125tag:blogger.com,1999:blog-436024129575354145.post-21183615473358970642018-08-24T11:09:39.675-07:002018-08-24T11:09:39.675-07:00I tried to do the right thing & hired a charte...I tried to do the right thing & hired a chartered accountant to do my deceased father’s income tax & trust returns. Accountant told me not to worry about deadlines. Just got first notice of assessment for most recent return, with a penalty & interest totalling $515.00, as return was 90 days late. Can I demand that money from accountant?<br />There are 3 more returns still with CRA, Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-72698688750456150842018-06-08T10:31:56.270-07:002018-06-08T10:31:56.270-07:00Hi. Very helpful. I have a question, regarding the...Hi. Very helpful. I have a question, regarding the CRA clearance certificate. Will the CRA ask for a further tax form from the previously deceased spouse? The executor is wanting to hold back inheritance money from my father's estate, until CRA is satisfied with the tax form requested of my mother , who died 2 years before my father. DMaggieRosehttps://www.blogger.com/profile/02913708197456743501noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-68270830616146572922018-01-25T18:16:41.515-08:002018-01-25T18:16:41.515-08:00I'm no expert on CRA policy but I believe they...I'm no expert on CRA policy but I believe they like people to hold onto tax-related material for 7 years. Maybe check their webpage.<br /><br />You haven't said whether the estate was completely finalized, though it seems that's what you mean. A clearance certificate is not required by law. Executors usually do apply for them though, because the certificate provides proof that there Lynne Butler, BA LLBhttps://www.blogger.com/profile/09790353197833765108noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-61982945468044929322018-01-22T09:08:33.188-08:002018-01-22T09:08:33.188-08:00Hello: My mother died in 2008. Her accountant file...Hello: My mother died in 2008. Her accountant filed all the appropriate income tax returns, etc. Unfortunately he died before we had a chance to apply for a clearance certificate, which we have thus never obtained. I am currently trying to organize and declutter my house; as I go through old papers, I am coming across reams of investment income statements, receipts, and other such things of hers.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-19584851866964323062017-11-14T15:33:27.605-08:002017-11-14T15:33:27.605-08:00Who is the executor of the estate? If the executor...Who is the executor of the estate? If the executor wants releases signed, then the executor should provide an accounting and ask for the releases. It's not up to a beneficiary to decide that other beneficiaries must sign a release. <br /><br />It is fair, though, for a beneficiary to require an accounting of the interest earned so that she can check herself that the math has been done right. Lynne Butler, BA LLBhttps://www.blogger.com/profile/09790353197833765108noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-90118328031473462812017-11-12T07:53:11.509-08:002017-11-12T07:53:11.509-08:00My mentally challenged Aunt passed in Feb 2015. S...My mentally challenged Aunt passed in Feb 2015. She was a Ward of the Court in BC. Incapable of working during her life. Her only asset was a $200,000. GIC which was untouched over the 20 yrs it existed. Approx $25,000. interest was earned. 2 of 3 beneficiaries accept this, but the daughter of one beneficiary wants detailed accounting of interest, and release forms to be signed by all 3 Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-47572970204396664522017-10-27T19:24:38.201-07:002017-10-27T19:24:38.201-07:00It has been a year... since what? It takes about 6...It has been a year... since what? It takes about 6 months from the time someone applies for it. It cannot be applied for until the estate is finished, so that means the application is usually made about a year after someone dies.<br /><br />LynneLynne Butler, BA LLBhttps://www.blogger.com/profile/09790353197833765108noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-86509576162809245452017-10-25T10:59:04.237-07:002017-10-25T10:59:04.237-07:00It has veen nearly a year and i have not recieved ...It has veen nearly a year and i have not recieved my i heritance due to this certificate. It says could take six months but its been well over so is there a max that it could take? Anonymoushttps://www.blogger.com/profile/14238973166490169073noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-77174158993944044052017-08-07T16:33:48.888-07:002017-08-07T16:33:48.888-07:00My husband was the executor and only beneficiary o...My husband was the executor and only beneficiary of his brother's will. We originally purchased property together, my brother-in-law owning one half. We built and paid for a home on our half of the property. It was our understanding (and our brother-in-laws) that the property was titled as joint tenancy, but discovered after his death that it was tenants in common. Unfortunately this was Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-87625410211704632362017-06-02T05:36:59.470-07:002017-06-02T05:36:59.470-07:00I have this same problem - can anyone advise me pl...I have this same problem - can anyone advise me please? Thank-you kindly,<br />George<br /><br />My dad's wife is the executrix of this estate. She is also the only residuary beneficiary. My sibling, myself and my dad's wife were all gifted shares in a holding co. She will be finally applying for a clearance certificate in the next few weeks. She wants to wait to distribute the shares Georgehttps://www.blogger.com/profile/14550285274691642265noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-1963511172480868422016-10-07T06:30:49.463-07:002016-10-07T06:30:49.463-07:00I received a "to date of death" certific...I received a "to date of death" certificate. What is the difference between this and a "final distribution" clearance certificate? Thank you!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-30866166160486613072016-09-13T08:06:10.251-07:002016-09-13T08:06:10.251-07:00I have just received the NOA for my father's f...I have just received the NOA for my father's final taxes. It states that there is nothing owing. At the time of his passing he owned no property and any stock was converted to cash with all capital gains reported on the final taxes. (Total value under 100k). Would it be advisable to persue a Certificate if it was only cash that made up his final estate?Billhttps://www.blogger.com/profile/09614037550096988164noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-63671062511793473912016-09-08T14:19:17.539-07:002016-09-08T14:19:17.539-07:00More stuff, my father-in-law and mother-in-law had...More stuff, my father-in-law and mother-in-law had a business (sole proprietorship) which had some tools and so on and a bank account with a line of credit which my mother-in-law paid off with insurance $'s. Do I reference these tools separately and do I list the LOC?Anonymoushttps://www.blogger.com/profile/13205191428864072421noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-9178041971036376072016-09-02T12:22:11.254-07:002016-09-02T12:22:11.254-07:00You won't get another one unless you apply for...You won't get another one unless you apply for it. Not all executors do, but that's up to you. If it has been over 3 years, you've probably distributed the assets by now and completed all the tax returns, so you could apply.<br /><br />LynneLynne Butler, BA LLBhttps://www.blogger.com/profile/09790353197833765108noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-18633105614941867082016-09-02T12:20:22.345-07:002016-09-02T12:20:22.345-07:00Hi Steve,
I'd include more detail rather than ...Hi Steve,<br />I'd include more detail rather than less. If you don't mention any of those items, there are two problems:<br /><br />1. When you list the value of the property, you are listing the price at which it would likely sell. Unless every tool and lawnmower and couch is going with the house, you will have omitted the value of the items from the inventory.<br /><br />2. If you donLynne Butler, BA LLBhttps://www.blogger.com/profile/09790353197833765108noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-88606849024791424482016-09-01T20:30:53.123-07:002016-09-01T20:30:53.123-07:00I'm the executor of my father-in-laws estate. ...I'm the executor of my father-in-laws estate. It asks for a list of assets, how detailed does this nee to be? He was joint owner of a property, do they need to know more than that? such as the # of sheds, out buildings, tools, lawnmower :) Anonymoushttps://www.blogger.com/profile/13205191428864072421noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-83001301464942799012016-06-04T10:12:04.736-07:002016-06-04T10:12:04.736-07:00When you apply for a clearance certificate, you ar...When you apply for a clearance certificate, you are asking CRA to certify that there are no further taxes (income or capital gains) against the estate. They won't know there are no more taxes if you don't say what the assets are. For example, what if there was a cabin or something still in your mother's name? On sale or gift of the cabin there would be capital gains tax. They don'Lynne Butler, BA LLBhttps://www.blogger.com/profile/09790353197833765108noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-11231850712860189972016-06-03T15:21:47.643-07:002016-06-03T15:21:47.643-07:00My mother passed away four years ago, my sister an...My mother passed away four years ago, my sister and I were co owners of her house. She left some assets in RIF and death insurance. We paid all taxes on my late mother income tax. Recently I applied for the clearance certificate and we got back letter asking for the list of assets and distribution. Do I need clearance certificate if taxes were paid on the income and balance is zero. Why do I needSmithhttps://www.blogger.com/profile/14982927703469271053noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-17077785369490335512016-02-15T10:31:01.463-08:002016-02-15T10:31:01.463-08:00I think your best bet is to ask an accountant abou...I think your best bet is to ask an accountant about this. Accountants are the experts on taxes and CRA, and know a lot more about them than I do.<br /><br />LynneLynne Butler, BA LLBhttps://www.blogger.com/profile/09790353197833765108noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-69434796326947178262016-02-15T08:50:11.019-08:002016-02-15T08:50:11.019-08:00My sister died 5 years ago. I am the executor and...My sister died 5 years ago. I am the executor and I got two clearance certificates from the CRA, one for her person and one for her estate. Now, 5 years later, the CRA have sent me a new bill saying money is owed on her personal account. Can the CRA do this after they have issued a clearance certificate?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-4780925357264913992016-01-01T13:33:55.033-08:002016-01-01T13:33:55.033-08:00I received a Clearance certificate for my mothers ...I received a Clearance certificate for my mothers estate with the box checked off "to date of Death" will i be receiving another certificate final distribution? or is this it. it has been over 3 yrs now since her passing?<br />Anonymoushttps://www.blogger.com/profile/15330066944281372557noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-84993492564835027972016-01-01T13:31:53.660-08:002016-01-01T13:31:53.660-08:00On a clearance certificate it states ... to date o...On a clearance certificate it states ... to date of death, partial distribution and final distribution. if to date of death is checked off will i be getting another certificate or is this the Final one and this is finally over?<br />Anonymoushttps://www.blogger.com/profile/15330066944281372557noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-11436903854579265022015-11-13T17:33:42.720-08:002015-11-13T17:33:42.720-08:00That's a wonderful inheritance. And if you got...That's a wonderful inheritance. And if you got it without having to fight anyone over it, so much the better.<br /><br />LynneLynne Butler, BA LLBhttps://www.blogger.com/profile/09790353197833765108noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-75894338811189919172015-11-13T17:29:20.352-08:002015-11-13T17:29:20.352-08:00The Clearance Certificate is proof that all taxes ...The Clearance Certificate is proof that all taxes owed by the estate have been paid. So there is no way you can apply for it now. You are way premature. The estate isn't finished while it still holds property. Once your step-father has passed, the property is sold, any income is reported and any applicable taxes are paid, you can apply.<br /><br />Why not ask the accountant why he needs the Lynne Butler, BA LLBhttps://www.blogger.com/profile/09790353197833765108noreply@blogger.comtag:blogger.com,1999:blog-436024129575354145.post-50677291796531389652015-11-13T13:43:59.665-08:002015-11-13T13:43:59.665-08:00I am a co-trustee of my mothers estate. She owned...I am a co-trustee of my mothers estate. She owned a house and left a life interest to my step father , her common law spouse. The house will be sold on his death and the proceeds after the estate is settled will be divided equally to her four children. Do we need to apply now for a clearance certificate and are we required to provide our SIN # to the account. We have been advised by the Anonymousnoreply@blogger.com