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“What are my tax obligations when someone dies?”
The Executor is generally the one responsible for ensuring that all tax returns are filed. It could be as simple as filing one final personal tax return but it could be as complicated as filing multiple personal tax and trust returns for many years following. In addition to many other obligations like funeral arrangements, distributing and managing assets and more.
If you have been named an Executor, you should be aware of your responsibilities. Some great resources are available online, including CRA’s What To Do When Someone Has Died and the Canadian Bar Association BC Branch Your Duties As Executor.
This role is not to be taken lightly. Even when you believe someone’s estate is as simple as them owning only one house and/or receiving a pension or life insurance, it isn’t always as simple as that.
It all comes down to planning. Most of us would do anything for our family when alive but many do not think about how their family will manage after they pass, as noted with only 54% of those in BC having wills. Review your wills regularly. If you don’t have one, make one. Even when you have a plan, it can still be complicated as Sharon shares in her latest blog, Life is Short! When Is It Your Priority To Plan?, about the passing of her dad. Put your family first.
Have a question? Email or call us. And remember to check out our blogs, checklists and social media pages for more information on all things small business, tax, accounting and the Tri-Cities community.
***This blog is for information only and not to be used as tax advice or planning without first seeking professional advice. Information is subject to change without notice.