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 |