Contacting the CRA
You should contact the federal government as soon as possible. This includes steps resembling canceling a provincial health card, driver’s license and applying for Canada Pension Plan (CPP) death and survivor advantages.
From a tax perspective, you must contact the CRA by phone or mail. When calling CRA Individual Tax Inquiries at 1-800-959-8281, you must ensure that you have got the next available:
- Date of death
- Social Security Number (SIN)
- Postal address
- Last tax return or tax assessment
You should report the date of death and stop any ongoing advantages which will must be repaid.
There are several others Government agencies You must also notify.
Executors and next of kin
To officially represent someone who died of CRA, you may achieve this as a legal representative or appoint a licensed representative. A legal representative is generally the executor named within the deceased’s will. In Quebec, this representative is named a liquidator.
If you wish to access the deceased’s CRA account online, you’ll need to register for CRAs Represent a customer Service. You can do that using your CRA user ID and password or using the login service to pick out a login partner through your online banking.
On the welcome page, select Add Account → Representative Account → Register with Represent a Client → Register.
Once registered, you may submit documents using the Submit Documents service in Represent a Client. You must provide a replica of the death certificate and a replica of the need, probate, or letters of administration naming you as executor.
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If the deceased didn’t have a will, you may fill out and submit it Form RC552, Registration as Representative of a Deceased Person.
If you favor the old-fashioned way, you may as well mail or fax these documents to the CRA without registering for Represent a Client. You should send them to the Control center who taken care of the deceased based on their postal address.
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Once you’re authorized as legal representative, you may appoint a licensed representative, resembling an accountant or lawyer. You do that through your individual Represent-a-Client portal by entering the deceased’s Social Security number to access their online tax account.
In the Related Services section, select Authorized Representative and Authorize New Representative and follow the instructions. To appoint him, it’s essential to provide the representative’s RepID, CRA business number or group ID.
Tax returns
You must file a final tax return by the date of death, reporting income for that yr. There can be a deemed disposition of assets upon death that may trigger a tax on registered accounts resembling Registered Retirement Savings Plans (RRSPs) or Registered Retirement Income Funds (RRIFs).
Capital assets resembling unregistered investments, holiday homes and rental properties may be subject to capital gains tax.
Assets in other countries are also relevant, as Canadian residents are taxed on their worldwide income.
Certain decisions could also be available to defer taxes upon death, most notably a spousal rollover, which allows assets to be transferred to the surviving spouse or domestic partner.
