Summary:

In this podcast episode, Jenna & Gordon discuss taxes after an individual passes away. They emphasize the importance of seeking specialized advice from an accountant to help with dealing with taxes and estate distributions. Jenna & Gordon suggest being careful while distributing the estate to ensure that there is enough money to pay any taxes owed. They also mention that getting the clearance certificate from the CRA can take time, and it is important to know the deadlines and obligations related to tax filings.

They also distinguish the taxation system in Canada from that in the US, where there is an estate tax. In Canada, there is no specific estate tax, but there is a deemed disposition of all assets as of the date of death, which can lead to a significant tax liability in the terminal return. The hosts highlight that there may be a rollover for a surviving spouse or partner, which can be a consideration when determining tax implications.

Key points:

• Seek specialized advice from an accountant for tax-related matters after an individual passes away
• Obtaining a clearance certificate is an essential part of the process
• Executors must file a terminal return and an estate return and determine the deadlines as soon as possible after the individual’s passing
• The taxation system in Canada does not have an estate tax, but there is a deemed disposition of all assets as of the date of death
• A rollover for a surviving spouse or partner may be a consideration for tax implications

Hosts:
Jenna Carvalho
The smartest way to choose an executor.
Guardian Estate Company
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Gordon VanderLeek
Give your family a legacy of protection - Wills, Estates and Trusts.
VanderLeek Law
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