Losing a loved one is difficult, and the legal and financial work that follows can add stress. As executor (or liquidator, in Quebec civil-law contexts on the civil side), you have serious duties: locate assets, pay debts, file tax returns, communicate with beneficiaries, and eventually distribute the estate in line with the Will (subject to court and creditor rules).
Hiring an accountant early can save time, reduce errors, and help you understand tax elections, terminal vs estate returns, and when to seek a Clearance Certificate before large distributions.
1) Understand what an estate accountant does
An estate accountant’s work often includes:
- Preparing the deceased’s terminal (final) T1 return and any optional returns that make sense on the facts
- Preparing estate T3 returns for post-death income, including GRE considerations where applicable
- Identifying post-mortem planning or elections that could reduce tax for the estate or beneficiaries
- Coordinating with lawyers, financial institutions, and investment advisors
- Helping prepare statements of account and supporting schedules for beneficiary reporting
- Advising on CRA correspondence, payments on filing, and clearance certificates
2) Understand your role as executor
You remain responsible for the outcome even when you hire professionals. Typical duties include:
- Locating and reviewing the Will and obtaining probate if required
- Notifying beneficiaries and keeping them reasonably informed
- Managing and liquidating assets according to the Will and law
- Paying valid debts and taxes
- Seeking a Clearance Certificate where appropriate before final distributions, to reduce executor exposure to unpaid tax—see Canada.ca for the current application process
You may also coordinate with lawyers for court filings and interpretation issues.
3) Hire early—you do not need to wait for probate
Some executors wait until probate is complete before calling an accountant. That is not necessary. If there is a Will, an accountant can often begin document collection, valuation planning, and tax return scoping immediately, and can refer you to estate counsel when legal questions arise.
Early bookkeeping for estate bank and investment accounts also makes beneficiary reporting easier as the administration unfolds.
RHN can help
If you are unsure how to carry out your role or need help with terminal returns, T3 estate returns, or CRA compliance, contact RHN CPA. We can work alongside your lawyer to keep the estate on track.
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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