Trust & Estate Tax
Expert Trust & Estate Tax Filings for Canadian Families
From the final T1 return for the deceased to T3 trust returns, graduated rate estates, and CRA clearance certificates — we handle every tax obligation so executors and trustees can focus on what matters.
Protect What You've Built
Settling an estate or administering a trust involves a series of complex tax filings that most executors and trustees have never encountered before. Our CPAs guide you through every step — from the terminal T1 return and optional returns that reduce the estate's tax burden, to annual T3 filings, the new expanded trust reporting rules, and CRA clearance certificates — so the estate is settled correctly and your family's wealth is protected.
What We Handle
Final T1 Return for the Deceased
We prepare the terminal T1 return for the year of death, along with optional returns — rights and things, business income, and partner/proprietor returns — that can significantly reduce the estate's overall tax burden.
T3 Trust Income Tax Returns
Annual T3 returns for testamentary trusts, inter vivos trusts, family trusts, alter ego trusts, and graduated rate estates — ensuring all income is reported correctly and all available deductions are claimed.
Graduated Rate Estate (GRE) Planning
For the first 36 months after death, an estate qualifies as a GRE and is taxed at graduated personal rates. We structure distributions to take full advantage of this window before the flat top rate applies.
Expanded Trust Reporting Compliance
Since 2023, most Canadian trusts must disclose all trustees, beneficiaries, settlors, and persons with control — even with no income. We ensure your trust meets the new CRA reporting requirements and avoids penalties.
Deemed Dispositions & Capital Gains on Death
Death triggers a deemed disposition of all capital property at fair market value. We calculate the resulting capital gains, identify available rollovers to a surviving spouse, and minimize the tax owed.
CRA Clearance Certificate
Before distributing estate assets, executors need a clearance certificate confirming all taxes are paid. We prepare and submit the application and follow up with the CRA to minimize delays and protect the executor from personal liability.
Real Situations We Handle
Terminal T1 return
When a parent passes away, the executor must file a final T1 return reporting all income up to the date of death, including deemed dispositions of investments and real estate. We identify optional returns — such as the rights and things return — that can significantly reduce the tax owed.
Graduated rate estate
For the first 36 months after death, an estate qualifies as a graduated rate estate and is taxed at graduated personal rates rather than the flat top rate. We structure distributions to take full advantage of this window.
RRSP/RRIF on death
An RRSP or RRIF is fully taxable in the year of death unless rolled over to a surviving spouse or a financially dependent child. We advise on the rollover rules and ensure the correct amounts are reported on the terminal return.
New trust reporting rules
A family trust that has never filed a T3 because it had no income is now required to file annually and disclose all trustees, beneficiaries, and settlors. We help trustees come into compliance and avoid the significant penalties for late or missing filings.
Frequently Asked Questions
Navigating an Estate or Trust? We Can Help.
Book a free consultation and we will walk you through the tax obligations and next steps for your situation.
Book a Free Consultation