What is the first thing to do financially when someone dies in Canada?

Secure the home and assets, locate the will, and contact a funeral home. Then notify Service Canada (to stop CPP/OAS/GIS), cancel benefits, and contact the executor or estate lawyer. File for CPP Death Benefit ($2,500) and cancel any subscriptions or pre-authorized payments.

Who pays debts when someone dies in Canada?

The deceased person''s estate pays debts — not their family members. The executor uses estate assets to settle debts before distributing to heirs. If the estate has insufficient funds, creditors absorb the loss. Exceptions: joint debts and co-signed loans pass to the surviving co-signer.

How long does estate settlement take in Canada?

Simple estates take 6-12 months. Complex estates with real property, business interests, or disputes can take 1-3+ years. The executor must wait at least 12 months before final distribution (creditor claim period). Probate alone takes 1-6 months depending on province.

What taxes are owed when someone dies in Canada?

A final tax return must be filed for income earned until the date of death. All registered accounts (RRSP, RRIF) are fully taxed as income unless rolled to a spouse. Capital gains on all assets are deemed disposed at fair market value. The estate may owe significant taxes.

Financial Checklist When Someone Dies in Canada 2026

Immediate Steps (First 48 Hours)

Step	Action	Contact
1	Arrange funeral/burial/cremation	Funeral home
2	Obtain death certificate copies (10+)	Funeral home or provincial vital statistics
3	Secure the home and valuables	Change locks if needed
4	Locate the will and identify executor	Lawyer, family, safe deposit box
5	Notify immediate family	Personal

First Week

Step	Action	Contact
6	Notify Service Canada	1-800-277-9914
7	Cancel CPP, OAS, GIS, EI	Included in Service Canada call
8	Apply for CPP Death Benefit ($2,500)	Service Canada / My Service Canada
9	Apply for CPP Survivor’s Pension	Service Canada
10	Cancel provincial health card	Provincial health authority
11	Notify employer (if applicable)	HR department
12	Contact life insurance companies	With death certificate

First Month

Step	Action	Notes
13	Meet with estate lawyer	Discuss probate, will validity
14	Apply for probate (if required)	Certificate of Appointment (ON) or Grant of Probate
15	Notify all banks and financial institutions	Freeze accounts, establish estate accounts
16	Notify investment firms (RRSP, TFSA, RRIF)	Provide death certificate
17	Contact mortgage lender	Mortgage may have insurance
18	Cancel credit cards	Note any balances for estate
19	Notify landlord or manage property	Continue payments from estate
20	Redirect mail (Canada Post)	To executor’s address

Financial Notifications Checklist

Government

Agency	Action	How
Service Canada	Cancel CPP/OAS/GIS, apply for death benefit	Phone or online
CRA	Notify of death, request clearance certificate	Phone or letter
Provincial health	Cancel health card	Provincial office
Elections Canada	Remove from voter list	Automatic via death registration
Passport Canada	Cancel passport	Return with death certificate
Provincial driver’s licence	Cancel	Provincial office

Financial Institutions

Institution	Action	Documents Needed
Banks	Freeze accounts, set up estate account	Death certificate, probate, executor ID
Investment firms	Report death, begin transfer	Death certificate, probate
Mortgage lender	Notify, check for insurance	Death certificate
Insurance companies	File life insurance claims	Death certificate, policy numbers
Credit card companies	Cancel cards, note balances	Death certificate
Pension provider	File for survivor benefits	Death certificate, marriage certificate

Other

Service	Action
Utilities	Transfer or cancel
Internet/phone	Cancel or transfer
Subscriptions	Cancel (Netflix, gym, etc.)
Professional memberships	Cancel
Social media	Memorialize or delete accounts
Email accounts	Secure, download important info
Vehicle insurance	Cancel or transfer

Estate Settlement Process

Step 1: Probate

Province	Fee	Timeline
Ontario	0.5% on first $50K + 1.5% on remainder	2-6 months
BC	Varies ($0-$1,400+)	1-3 months
Alberta	$525 flat (estates $250K+)	1-3 months
Quebec	Notarial will: no probate. Others: $217	1-6 months
Manitoba	$70 flat	1-3 months
Nova Scotia	$1,003 on $200K, graduated	2-4 months

Step 2: Inventory Assets and Debts

Assets to Inventory	Debts to Inventory
Bank accounts	Mortgage balance
Investment accounts	Credit card balances
Real estate	Lines of credit
Vehicles	Car loans
RRSP/RRIF/TFSA	Student loans
Pension(s)	Income tax owing
Life insurance	Outstanding bills
Business interests	CRA debts
Personal property

Step 3: Pay Debts and Taxes

Priority	Payment
1	Funeral costs
2	Estate administration costs (lawyer, executor fees)
3	CRA debts (income tax, capital gains)
4	Secured debts (mortgage)
5	Unsecured debts (credit cards, lines of credit)
6	Bequests and distributions

Step 4: File Final Tax Return

Return	Deadline
Final T1 return	April 30 of following year (or 6 months after death if died Oct-Dec)
Optional returns (rights & things, business income)	Varies
Trust/estate return (T3)	90 days after estate’s fiscal year-end
CRA clearance certificate	Apply before distributing assets

Tax Implications of Death

Deemed Disposition

When someone dies, CRA treats all assets as sold at fair market value:

Asset	Tax Treatment
RRSP/RRIF	Full balance taxed as income (unless rolled to spouse)
TFSA	Tax-free to beneficiary/successor holder
Non-registered investments	Capital gains on growth since purchase
Principal residence	Exempt from capital gains
Rental/investment property	Capital gains on full growth
FHSA	Tax-free to spouse (if successor holder designated)

Tax Bill Example

Asset	Value at Death	Cost Base	Taxable Gain	Tax (at 40%)
RRSP	$500,000	$0	$500,000 (income)	$200,000
Cottage	$600,000	$200,000	$400,000 (capital gain)	$80,000
Stocks	$200,000	$100,000	$100,000 (capital gain)	$20,000
Total tax				$300,000

This is why estate planning is critical. Spousal rollovers, life insurance, and strategic withdrawals can dramatically reduce the tax bill.

Spousal Rollovers

Asset	Transfer to Spouse	Tax
RRSP/RRIF	Rolls tax-free to spouse’s RRSP/RRIF	Deferred
TFSA	Tax-free to successor holder	None
Principal residence	Exempt transfer	None
Other property	Can elect rollover at cost base	Deferred

Costs of Estate Settlement

Expense	Typical Cost
Funeral	$5,000-$15,000
Probate fees	$0-$15,000+ (depends on province and estate size)
Estate lawyer	$2,000-$10,000+
Executor compensation	2.5-5% of estate value
Accountant (tax returns)	$500-$3,000
Property appraisals	$300-$500 each
Total on $500K estate	$15,000-$45,000

CPP Death Benefit and Survivor’s Pension

CPP Death Benefit

Feature	Details
Amount	$2,500 (flat)
Who receives	Spouse, next of kin, or estate
Application deadline	Within 60 days (recommended)
Taxable?	Yes (to the estate or recipient)

CPP Survivor’s Pension

Recipient	Maximum Monthly	Factors
Surviving spouse (under 65)	Up to ~$739/month	Age, own CPP, deceased’s contributions
Surviving spouse (65+)	Up to ~$443/month	Combined with own CPP (capped)
Dependent children	$294/month per child	Under 18 (or 18-25 in school)

To-Do List for Executor

Timeline	Tasks
Week 1	Secure assets, notify Service Canada, apply for death benefit
Month 1	Contact lawyer, apply for probate, notify institutions
Months 1-3	Inventory assets/debts, set up estate bank account
Months 3-6	Sell assets if needed, pay debts
Month 6+	File final tax return, apply for CRA clearance
Month 12+	Distribute estate to beneficiaries
Ongoing	Keep detailed records of all transactions

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