Someone You Love Has Died and You Are the Executor. Now What?

Losing someone you love is hard. Being named their executor can feel like a second heavy load. An executor is the person named in a will to wrap up someone’s money matters after they die. In Ontario, this person is called an estate trustee. It is the same job. Here are the main executor duties in Canada, explained simply.

Sarah’s dad passed away last month. She came to Dr. Major feeling lost.

A Conversation About Executor Duties

Sarah: Dad named me as his executor. I don’t even know what that means.

Dr. Major: First, I am so sorry for your loss, Sarah. Take a breath. Being an executor is like being the person who cleans up after a big family dinner. You make sure every dish is washed and put away before you turn off the lights.

Sarah: Where do I start?

Dr. Major: Find the will and get several copies of the death certificate. Then tell the government. Let Service Canada and the Canada Revenue Agency, or CRA, know your dad died. This stops payments like his pension from going in by mistake. Money paid after a death usually has to be paid back.

Sarah: What about his bank account and his house?

Dr. Major: Make a list of everything he owned and everything he owed. Think bank accounts, investments, the house, the car, credit cards and bills. Then call each bank. Some banks will ask for a court paper called probate before they let you use the money. A lawyer can tell you if you need it.

Sarah: Should I keep paying his bills?

Dr. Major: Keep the important ones going, like home insurance and utilities, so the house stays safe. But pay them from the estate, not from your own wallet. Many executors open a separate estate bank account. That keeps everything clean and easy to track.

The Final Tax Return and the T3 Return

Sarah: Does Dad still have to do taxes?

Dr. Major: Yes. You file one last tax return for him. It is called the final return. It covers January 1 up to the day he died. If he died between January and October, it is usually due April 30 of next year. If he died in November or December, you have six months.

Sarah: What if his things, like his house or savings, earn money after he died?

Dr. Major: Good thinking. That money belongs to the estate. The estate may need its own tax return, called a T3 return.

Why You Need a CRA Clearance Certificate

Sarah: My brother wants his share right away. Can I just give it to him?

Dr. Major: Please wait. This is the most important tip I can give you. Before you hand out money, ask the CRA for a clearance certificate. It is a letter that says all the taxes are paid. If you give money away first and the CRA later says taxes are owed, you could have to pay them out of your own pocket.

Sarah: Wow. How long does that take?

Dr. Major: It can take several months, so ask early and keep your family in the loop. It is fine to keep some money back until the letter arrives.

Sarah: This feels like a lot.

Dr. Major: It is a lot, and you do not have to do it alone. Keep a folder with every bill, letter and receipt. And lean on a lawyer and an accountant. That is what we are here for.

Executor Checklist

• Find the will and get copies of the death certificate.
• Tell Service Canada and the CRA about the death.
• File the final tax return on time.
• File a T3 return if the estate earns money.
• Get a CRA clearance certificate before you hand out money.
• Keep every paper in one folder.

Feeling overwhelmed as an executor? Major Tax & Accounting, CPA in London, Ontario prepares terminal tax returns, T3 returns and clearance certificate requests as part of our estate and trust services. Book a 15 minute call.

This article is general information only. It is not tax, legal or financial advice. Every family and business is different, so please speak with a qualified professional about your own situation.