Estate Tax Accountant in London, Ontario
Managing estate taxes after the passing of a loved one can be a stressful and time-consuming process.
The tax regulations surrounding estates and deceased individuals can be complex, making it difficult for executors and beneficiaries to navigate them efficiently.
Enlisting the support of a tax professional can ensure compliance with all requirements and provide peace of mind during an already challenging time.
Our qualified team in London, Ontario can help ease the burden of Final/Estate Taxation. Contact the NG Chartered Professional Accountants team today!
Please enquire on our Contact Us page for a no-charge consultation.
How we can help with Final/Estate Taxation
We specialize in helping executors navigate the financial responsibilities that come along with settling an estate. Our team helps executors fulfil their duties with confidence.
Complex issues can arise, especially when the deceased is an owner of private company shares (CCPC) or holds other significant assets such as Life Insurance or Real Estate.
Clearance Certificates
Terminal Returns
Estate Trust Return
Rights or Things Return
Tax Estimates
Post Mortem Planning
Private Company Share Transfer
Donation Carryback & Optimization
Meet Our Estate Tax Team
NG CPA is a Chartered Professional Accountant firm specializing in final and estate taxation. Our estate team holds the CPA designation and has completed the CPA Canada In-Depth Tax Program — the most rigorous tax training available to Canadian accountants.
We work with executors and families on estates of all sizes, from straightforward terminal returns to complex estates involving testamentary trusts, spousal trusts, and private company shares held at death.
Where possible, we begin with pre-mortem planning — the most valuable step you can take, as structuring your affairs before death can significantly reduce the taxes that would otherwise arise. Where taxes cannot be fully avoided, our post-mortem strategies further minimize the burden after the fact.
Not comfortable with technology? No problem. We offer in-person meetings to walk you through the process at your own pace — and we have a pretty good coffee machine.
Robert Ng
CPA, CA, BBA
3 Year In Depth Tax Specialist completed
(Practicing since 2006)
Luke Jackson
BA
(Practicing since 2010)
Christie Roberts
CPA, BComm
3 Year In Depth Tax Specialist completed
(Practicing since 2010)
Jean Rose Nepangue
Robert Ng
CPA, CA, BBA
3 Year In Depth Tax Specialist completed
(Practicing since 2006)
Luke Jackson
BA
(Practicing since 2010)
Christie Roberts
CPA, BComm
3 Year In Depth Tax Specialist completed
(Practicing since 2010)
Jean Rose Nepangue
What is a terminal tax return in Canada?
A terminal tax return is the final income tax return filed on behalf of a deceased individual for the year of their death. It reports all income earned from January 1st of that year up to the exact date of passing. In Canada, this return allows the executor to claim full annual personal tax credits, which can significantly reduce the final tax liability of the estate.
What are Rights or Things tax returns?
A Rights or Things return is an optional, separate tax return that an executor can file for income that the deceased person was owed but had not yet received at the time of their death. Examples include undeclared dividends, uncashed salary checks, or accrued vacation pay. Filing a separate Rights or Things return is a powerful tax-saving strategy because it allows the estate to split income and utilize a second set of non-refundable tax credits.
When does an estate need to file a T3 Trust Return?
An estate must file a T3 Trust Return if the estate earns income (such as investment interest, dividends, or rental income) after the date of death and before the assets are distributed to beneficiaries. If the estate generates more than $500 in annual income, or if any asset is distributed to a beneficiary while holding back income, a T3 return is legally required by the Canada Revenue Agency (CRA).
What is a pipeline strategy in post-mortem tax planning?
A pipeline strategy is a specialized corporate tax planning technique used in Canada to prevent double taxation when a shareholder of a private corporation passes away. Without a pipeline strategy, the deceased can face a severe tax hit on their final return, and the beneficiaries can face another tax hit when pulling funds out of the company. A pipeline strategy safely extracts corporate funds at lower capital gains tax rates rather than higher dividend tax rates.
How do I get a Clearance Certificate from the CRA?
To get a Clearance Certificate, an estate trustee or executor must submit Form TX19 (Asking for a Clearance Certificate) to the Canada Revenue Agency after all final corporate, trust, and personal tax returns have been assessed. A Clearance Certificate is a legal document confirming that the deceased person and their estate have paid all taxes owed. Executors should always secure this certificate before distributing estate assets to avoid being held personally liable for unpaid taxes.
Important Estate Tax Deadlines
Filing deadlines for an estate depend heavily on the date of the individual’s passing. Missing these deadlines can result in penalties, so it is critical to stay on track.
Terminal Tax Return
Apr 30
Jan 1 – Oct 31
6 months
Nov 1 – Dec 31
April 30 of the following year — or June 15 if the deceased or their spouse was self-employed. The 6-month window applies when death occurs in the final two months of the year.
Rights or Things Return
1 year
or 90 days — whichever is later
Due on whichever is later: one year after the date of death, or 90 days after the CRA mails the Notice of Assessment for the Terminal Return.
T3 Trust Return
90 days
after estate’s tax year-end
Due 90 days after the estate’s tax year-end. A Graduated Rate Estate can choose a year-end date up to one year after the date of death.
Corporate Tax Returns (T2)
No change
same deadlines as always
If the deceased owned a corporation, the company’s filing and payment deadlines are unaffected — due six months after the corporate year-end, as usual.
Case Studies
Calculating Estimated Tax on Death for CCPC Owners:
We helped a business owner calculate their estimated tax on death. The client holds Life Insurance policies within their Canadian Controlled Private Corporation (CCPC).
We mapped out the tax implications of this structure to help the owner determine the actual net proceeds their Estate would receive, removing the guesswork from their Succession Planning and providing them with an informed independent calculation.
We are fully Independent of any investment advisors or insurance agents which provided this client comfort of his estate of taxes that will be triggered on death.
Managing Trust Taxes for Minor Beneficiaries:
We assisted an Executor who was managing an inheritance left to a Minor child. The tax rules in these situations are specific and somewhat complicated. We worked with the trustee to implement strategies to defer Taxation while the child is under 18, ensuring the inherited funds are protected and optimized for the future.
The rules for a Minor child can be complicated and can be unexpected, especially for a the typical Executor that finds themself working with complex tax legislation.
Navigating Terminal Returns and Stop-Loss Rules:
A client approached us to help navigate the complex taxation involved in winding up and redeeming Private Company shares after an owner’s passing. Specifically, we guided them through how corporate life insurance proceeds impact the Capital Dividend Account (CDA).
We also put planning in place to Mitigate the stop-loss rules that can heavily impact the final terminal tax return. In many situations like this one, planning was not done in advance, which could have helped simplify the process and result in a faster cash distribution to the estate.
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