Miller Thomson on Estate Planning: release 2018-1
Tax Dispute Resolution
David W. Chodikoff and John Grant
A sample from the most recent release is excerpted here:
Legal representatives, such as executors and trustees, may be personally liable for the unpaid tax liabilities of a deceased under the Income Tax Act (Act). Therefore, tax compliance should be a primary concern for representatives. Legal representatives should file tax returns prior to tax payments coming due, if possible, and tax liabilities of a deceased should be paid promptly and on a timely basis. In addition, as a best practice, representatives should obtain a clearance certificate from the CRA, before distributing assets from an estate to ensure there are no outstanding tax liabilities that the legal representative is unaware of.