Before distributing an estate: request a clearance certificate from the CRA
File returns, pay or secure balances, prepare the inventory and wait for the certificate before final distribution.
A representative who distributes property too early may become personally liable for unpaid tax up to the value distributed.
Stabilize the estate
Obtain authority to act, notify the CRA and retain a reserve. Do not confuse a prudent advance with final distribution.
Complete obligations
File required returns through the covered period, answer assessments and pay or secure amounts owing.
Prepare the request
Attach the applicable form, will or appointment, detailed inventory, beneficiaries, values and requested records. Clearly define the covered period.
Wait, then distribute
Keep the certificate and check its limits before releasing the balance. Years or property outside its scope can still create liability.
Request a clearance certificate — CRA