A will should be in place with an executor assigned for the estate. If a will is not in place a lawyer and accountant should be immediately consulted.
Estate Trust Number
Upon death an application to CRA for a estate trust number should be done by the accountant with a copy of the registered will to establish the executor of the estate.
If the death occurred between January 1 and October 31 inclusive, the due date for the final return is April 30 of the following year.
If the death occurred between November 1 and December 31 inclusive, the due date for the final return is six months after the date of death.
There is no inheritance tax in Canada. The taxes are paid directly from the Estate prior to reaching the heirs. The Trust returns have to filed if disposition occurs after the filing of the death return.
While the state does tax estate money, they do not tax insurance money.
Make sure you purchase insurance plans to offset the amounts your estate stands to lose in taxes to protect your loved ones from accumulating unnecessary debt.
Work with a Team: The best way to ensure you plan your estate properly is to work with a team of accountants and insurance brokers. These professionals train in the art of estate planning, and can help you best allocate and protect your remaining assets.
Are you looking for a team to help you plan your estate? Dean and Associates Accounting offers experienced accountants, prepared to help you organize your estate in preparation for the future.