You've just been named executor of a Canadian estate. The first thing you need to know: this is an 18-month job, not a weekend errand. The Canada Revenue Agency holds executors personally liable for unpaid taxes if you distribute the estate before getting a clearance certificate. Mess up step 18 (the clearance certificate) and a CRA audit two years from now lands on your bank account, not the estate's.
This is the 22-step playbook for the typical Canadian estate. Every step links to the form, the calculator, or the official CRA / Service Canada page where the rule lives.
Phase 1: First 48 hours
Step 1: Get a medical certificate of death
Issued by the attending physician or coroner. Some provinces use a paper form, others digital. The funeral home typically picks it up. Without this, no other paperwork can begin.
Step 2: Obtain official death certificates
Apply through the provincial Vital Statistics office. Order 5-10 copies ($35-$50 each, varies by province). Each financial institution and government agency requires an original. Funeral home funeral director can request these on your behalf.
Step 3: Locate the will
Check the deceased's lawyer, safe-deposit box, fireproof safe, filing cabinet. In Ontario and Manitoba, the original must be filed with the Estate Court before probate. If there's no will, the estate is intestate and provincial intestacy rules govern distribution.
Phase 2: First 2 weeks
Step 4: Notify Service Canada (single transaction)
One call to 1-800-622-6232 or visit a Service Canada Centre with the death certificate to coordinate notifications across CPP, OAS, GIS, EI, and other federal programs. Use Notification of death (federal coordination).
Step 5: Apply for the CPP death benefit ($2,500)
Form ISP1200 - applies whether or not the deceased contributed. Apply within 60 days for the full $2,500; later applications may receive a reduced amount. The benefit is taxable to the recipient (usually the estate or surviving spouse). Use the CPP death benefit + survivor calculator to confirm eligibility for the surviving spouse's ongoing CPP survivor pension. Authoritative reference: Service Canada: CPP death benefit.
Step 6: Apply for CPP survivor pension (if applicable)
Surviving spouse / common-law partner gets monthly survivor pension based on deceased's CPP contributions. Apply via Form ISP1300. Combined cap of $1,433/month in 2026 if survivor already receives own CPP retirement pension. Service Canada: CPP survivor pension.
Step 7: Notify employer + claim group benefits
Final paycheque, accrued vacation, group life insurance, employer pension, group RRSP, deferred profit-sharing. The deceased's HR department handles most of this - contact within 5 business days.
Step 8: Cancel/redirect mail
Canada Post offers a free service to redirect mail to the executor's address for one year. Visit a post office with the death certificate and your ID.
Step 9: Notify all banks and freeze accounts
Joint accounts pass automatically to the surviving owner. Solo accounts get frozen on notification - only the executor (with probated will, when required) can withdraw. Cancel pre-authorized payments after listing what's still essential (utilities, insurance).
Step 10: Notify CRA of the death
Use the CRA What to do when someone has died portal. The deceased's CRA account stays open until the final return is filed and clearance certificate issued. CRA recalculates GST/HST credit, Canada Child Benefit, and Climate Action Incentive eligibility based on the death.
Phase 3: First 1-3 months
Step 11: Apply for probate (if required)
Average probate processing time by province
Estimated; varies with estate complexity
Probate is the court process that confirms the executor's authority. Not always required - joint property and assets with named beneficiaries pass without probate. Required when:
- The estate has solo bank accounts or non-registered investments above $10K-$50K (varies by institution)
- Real estate is held solely in the deceased's name
- There's a dispute or potential challenge to the will
The probate fee depends on your province - see the full schedule on probate fees by Canadian province. Run your specific estate through the probate calculator.
Processing time: 4-6 weeks in Alberta and Quebec, 8-16 weeks in Ontario and BC, sometimes 6+ months in heavily-backlogged jurisdictions.
Step 12: Inventory and value all assets
Get formal valuations as of the date of death:
- Real estate: appraisal from a designated appraiser
- Stocks and bonds: closing price on date of death (or T-1 if death was on weekend)
- Private business interests: independent business valuator
- Personal property: replacement value or fair-market for jewelry, art, collectibles over $5,000
- Vehicles: black book value
This inventory anchors both the probate filing and the deemed-disposition tax calculation. Use the deemed disposition calculator to model the capital-gains exposure.
Step 13: Open an estate bank account
Once probate is granted (or for small estates, with the death certificate alone), open a bank account in the name of "Estate of [deceased name]". All inflows (sold assets, refunded payments, CPP death benefit) flow into this account; all outflows (bills, executor expenses, eventual distributions) flow out of it. Maintain meticulous records - the beneficiaries can demand an accounting.
Step 14: Pay ongoing expenses
Continue paying:
- Mortgage / property tax / utilities (until the property is sold or transferred)
- Insurance (homeowner's, vehicle - keep coverage to avoid liability gap)
- Pre-existing care contracts (long-term care, home care that extends past death)
- Subscription services (cancel non-essential)
Reasonable executor expenses (mileage, courier, copy fees, parking at probate court) are reimbursable from the estate.
Phase 4: Months 4-12 - the tax phase
Step 15: File the terminal T1 (deceased's final return)
Due April 30 of the year after death OR 6 months after the date of death, whichever is later. So a March 1, 2026 death has a final return due April 30, 2027. A November 15, 2026 death has it due May 15, 2027.
The terminal T1 includes:
- Pro-rated employment income (Jan 1 to date of death)
- Pension income
- Investment income
- Deemed disposition gains (capital gains from Step 12)
- RRSP/RRIF FMV (full balance unless rolled over to spouse)
- Standard deductions and credits
Use the terminal T1 estimator to size the tax. Authoritative reference: CRA T4011: Preparing returns for deceased persons.
Optional separate returns can split income into multiple final returns - one for "rights or things" (uncashed cheques, declared but unpaid dividends), one for income from a sole proprietorship or partnership. Each return uses its own basic personal amount, providing tax savings. Worth running by a CPA for estates with mixed income types.
Step 16: Decide on RRSP/RRIF rollover
If the deceased's RRSP/RRIF named the spouse as beneficiary, the executor and spouse must complete the rollover via Form T2030 (RRSP-to-RRSP) or T2033 (RRIF-to-RRIF). Without rollover, the full FMV hits the terminal T1 as taxable income.
Step 17: File T3 estate trust return (if estate generates income)
If the estate continues holding income-generating assets (rental property, investments) after death, the estate becomes a graduated rate estate (GRE) for the first 36 months. GREs file a T3 trust return annually.
GRE benefits: graduated personal rates (not the top trust rate of 53.5%), no need to use a calendar year-end (can pick any year-end up to 12 months from death), can use loss carrybacks against the terminal T1.
After 36 months, the estate becomes a regular trust taxed at the highest marginal rate. Strong incentive to wind up the estate within the GRE window.
Step 18: Apply for CRA clearance certificate (Form TX19)
Distribute without TX19
Executor pays unpaid CRA balances out of own pocket. No statute of limitations on fraud cases.
Wait for TX19 clearance
CRA certifies all taxes paid. Distribute the estate, sign off, walk away. 4-6 months processing.
This is the step executors most often skip - and the one that creates personal liability if you do.
The clearance certificate is CRA's confirmation that all taxes (terminal T1, T3 estate, GST/HST, payroll if applicable) have been paid. Without a clearance certificate, an executor who has distributed the estate is personally liable for any later-discovered tax.
Apply via Form TX19. CRA processing time: 4-6 months currently. Plan for it.
Authoritative reference: CRA Form TX19: Asking for a clearance certificate.
Phase 5: Months 13-18 - distribution and close
Step 19: Pay specific bequests
"To my niece Sarah, $25,000" - these are paid first from the estate, before residue is calculated. Get receipts; record in the executor's accounting.
Step 20: Calculate and pay residue
The residue is what's left after specific bequests, debts, taxes, executor compensation, and legal/accounting fees. Distributed per the will (or intestacy formula).
For estate-planning context across asset types, run the projected net-to-beneficiary number through the estate planning calculator as a sanity check before distribution.
Step 21: Close the estate accounts
Once everything is distributed, close the estate bank account. Keep all records (will, probate grant, T1/T3, clearance certificate, beneficiary receipts) for at least 7 years - CRA can audit a deceased's return up to 4 years from filing, longer if fraud is suspected.
Step 22: Final reporting to beneficiaries
Provide each beneficiary with a final accounting: opening balance, all transactions, closing balance, breakdown of their distribution. Some provinces require formal court "passing of accounts" for estates over a certain size - your estate lawyer will tell you whether yours qualifies.
Special situations to watch for
The deceased was a US person
US estates above $13.99M (2026 federal exemption) trigger US estate tax even on a Canadian-resident deceased who held a US green card or citizenship. The Canada-US tax treaty provides relief but the filing complexity multiplies (Form 706, Form 8854, IRS clearance). Engage a cross-border tax specialist immediately.
Real estate in another province
Real estate is governed by the law of the province where it sits. A Quebec resident with an Ontario cottage needs Ontario probate (called "ancillary probate") for the cottage in addition to Quebec succession proceedings.
Business interests
Private-company shares in a Canadian-controlled private corporation (CCPC) qualify for the Lifetime Capital Gains Exemption (~$1.25M in 2026) if the QSBC test is met. Section 50(1) loss claims on worthless shares. Section 84.1 and surplus stripping rules. This is specialist territory - get a tax CPA who handles CCPC estates.
Estate is insolvent
If debts exceed assets, the executor pays creditors in priority order (CRA, secured creditors, then general). Beneficiaries get nothing. The executor is not personally liable for the estate's debts unless they distribute funds before paying CRA.
The executor's basic timeline at a glance
| Time | What to do | Deadline |
|---|---|---|
| Day 1-2 | Death certificate, locate will | Immediate |
| Week 1-2 | Service Canada notification, CPP applications | Within 60 days for full CPP death benefit |
| Month 1 | Probate application, asset inventory, estate account | No statutory deadline but earlier is better |
| Month 4-6 | Probate granted, asset valuation finalized | Varies by province |
| Month 6-12 | Terminal T1 filing | Apr 30 next year OR 6 mo after death (later) |
| Month 12-15 | T3 estate trust return (if applicable) | 90 days after fiscal year-end |
| Month 15-18 | Apply for clearance certificate (Form TX19) | Before distributing |
| Month 18+ | Distribute estate, close accounts, final accounting | After clearance certificate received |
Getting professional help
For estates over $500K or with any complications (US assets, business, blended families, disputes), hire:
- Estate lawyer ($2,500-$10,000) - drafts probate application, advises on contentious points
- CPA experienced with terminal returns ($1,500-$5,000) - files T1 and T3, calculates deemed disposition optimally
- Investment advisor - values portfolio at date of death and helps with rollovers
These fees are paid from the estate before distribution and reduce probate fees correspondingly. The cost-benefit math almost always favours getting professional help on estates over $500K. Self-administer only if the estate is simple (single beneficiary, no business, RRSP fully rolled to spouse, principal residence as the only meaningful asset).
Pre-need checklist for the executor-to-be
If you've been named executor in someone's will and they're still alive, ask them now to:
- Show you where the will is kept and who their estate lawyer is
- Walk through their financial accounts and password storage
- Explain their wishes around any complex assets (business, art, intellectual property)
- Document their funeral preferences
- Provide contact details for their accountant, financial advisor, and insurance broker
The deceased themselves should follow the Canada estate planning before death (15 steps) checklist to make your eventual job possible. Done well, the executor's role takes 100-200 hours over 18 months. Done badly, it can run 500+ hours and cost the executor money out of their own pocket.