Heads Up: Executor's Tax Compliance Responsibilities On Death

As we head into tax season, we want to give our readers a refresher and a resource on tax filings for estates.

Executors are generally responsible for income tax compliance for a deceased person and their estate, including preparing and filing all necessary tax returns in all relevant jurisdictions, paying any taxes owing and obtaining all tax clearances, if appropriate.

Canadian Tax Compliance

Under the Canadian Income Tax Act, executors are required to file the following Canadian income tax returns:

• Returns for any taxation year prior to the year of death not previously filed;
• A final or what is referred to as the "terminal" return for the year of death covering the period from January 1 to the date of death; and