As executor of a deceased person’s estate, you may need to file estate returns with the Canada Revenue Agency (CRA) for income earned after the date of death until the estate is wound up. This is separate from the terminal (final) T1 return, which covers the deceased’s income up to the date of death.
What is an estate return?
An estate return reports income of the estate as a taxpayer—for example, investment income, rental income, business income, and capital gains on estate assets after death and before final distribution to beneficiaries.
Most estates use the T3 Trust Income Tax and Information Return (commonly referred to as the T3 return) to report that post-death income, together with required schedules and slips as applicable (for example T3 slips to beneficiaries, NR4 where required, and summaries as applicable).
What income does an estate report?
The estate begins after death. Typical categories include:
- Interest and dividends on estate investments
- Rental income from estate-owned property
- Business income if the estate carries on a business
- Capital gains on sales of estate assets
Graduated Rate Estate (GRE)
A Graduated Rate Estate (GRE) is a Canadian-resident estate that meets the definition in the Income Tax Act and for which a valid GRE election is made. A GRE can benefit from graduated federal rates (similar to an individual) for up to 36 months after death, which can materially change tax outcomes compared to a non-GRE trust taxed at top rates.
GRE status is not automatic—it requires a timely election and ongoing compliance with conditions. Charitable donations and loss carrybacks from the estate may interact with GRE rules.
For current definitions, deadlines, and forms, rely on Canada.ca — Trusts and estate returns and professional advice.
Filing deadlines (overview)
Estate T3 filings are generally due 90 days after the estate’s tax year-end. The year-end depends on whether you are within the GRE window and the fiscal period chosen for the estate.
- If you elect GRE status, you may choose a non-calendar fiscal period within CRA rules, with filing 90 days after that year-end.
- After the GRE period (or if you do not qualify or elect), many estates move to a December 31 year-end with associated March 30 filing due dates (or the next business day if applicable)—confirm each year’s calendar.
Always verify current-year due dates on Canada.ca or with your CPA.
Need help?
Estate T3 work overlaps terminal T1 filings, probate, and beneficiary communications. Early involvement of an accountant and lawyer reduces missed elections and interest.
This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation. Please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your circumstances.
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