In a follow-up to her recent article, our Estate and Trust
expert, Karen Slezak, answers questions commonly asked by estate
executors in this second instalment.
Q. My aunt died a few weeks ago. When do her taxes have to
be paid?
A. Your aunt's final personal tax return is due by the
later of six months after the date of her death or
April 30th of the following taxation year (June 15th if she was
self employed before death). Income taxes for the year of death are
due at the time of filing. Additionally, estate tax returns are due
90 days after the taxation year of the estate, and tax is payable
at that time.
Q. Are funeral expenses deductible?
A. Unfortunately, no. Only expenses that are incurred by the
estate to earn income are tax deductible. These expenses are:
professional money manager fees, bank charges, accounting fees and
the portion of trustee or executor fees related to earning income
for the estate. Expenses of a personal nature (e.g., paying
