CRA Clearance Certificate for an Ontario Estate: An Estate Trustee Checklist

Published October 16, 2026 · Meysami Law Professional Corp. · Ottawa

A Canada Revenue Agency clearance certificate confirms that specified income tax and GST/HST amounts, interest and penalties have been paid or secured as of the certificate. For an Ontario estate trustee, it can be an important step before the final distribution of estate assets. It is a tax-administration document, not a substitute for probate, beneficiary releases or a complete estate accounting.

Understand the personal-liability issue

CRA states that a legal representative who distributes assets without obtaining a clearance certificate can be personally liable for unpaid amounts under the Income Tax Act or Part IX of the Excise Tax Act, up to the value of the assets distributed. The risk is tied to distribution, so the estate trustee should coordinate the proposed timing with the estate's tax position, liabilities and available reserve.

Do not apply at the same time as filing returns

CRA directs representatives to wait until required returns have been filed and the related notices of assessment have been received. If reassessments were requested, the related notices should also be available. The estate should have paid or secured the relevant taxes, CPP contributions, employment-insurance premiums, interest and penalties, and the representative's legal documents should already have been provided to CRA.

Identify the returns and periods the request must cover

An estate may involve the deceased person's terminal T1 return, optional returns, one or more T3 trust returns and, in some cases, GST/HST matters. The final return is not automatically the last estate filing. Confirm the date of death, estate year-ends, income earned after death, property dispositions and whether a testamentary trust continues before treating the tax work as complete.

Prepare the form and supporting record

CRA's process uses Form TX19 for an income-tax clearance certificate and may also require Form GST352 where a GST/HST account is involved. CRA lists supporting material such as the signed will and codicils, probate or appointment documents where applicable, evidence of authority, detailed asset information, distributions already made, proposed distribution of the holdback or residue and beneficiary details for non-cash property.

Keep an appropriate reserve during administration

Interim distributions may sometimes be considered, but a trustee should not leave the estate unable to pay taxes, professional accounts, debts, administration expenses or an adjustment after reassessment. The amount and conditions of any holdback depend on the estate. Document the calculation, the information available and the beneficiaries' communications rather than using a generic percentage.

Plan for CRA processing time

CRA's page, updated January 20, 2026, states that an acknowledgement is sent within 45 days and that assessment can take up to 120 days if all necessary documents were supplied; an audit can extend the process. These are published service expectations, not a guarantee for a particular estate. Avoid promising beneficiaries a final payment date that depends on an outstanding certificate.

Review the scope of the certificate received

Check the taxpayer or estate, periods and amounts covered before making the final distribution. CRA says newly discovered property that changes reported income or capital gains can require another clearance certificate before that property is distributed. A certificate also does not decide private disputes among beneficiaries or approve the estate trustee's accounts and compensation.

Coordinate legal and tax work before the residue is paid

Give the lawyer and tax preparer the will, certificate of appointment if any, asset and liability inventory, returns, assessments, CRA correspondence, accounting and proposed distribution. Confirm whether beneficiary releases, a passing of accounts, creditor issues, non-resident beneficiaries or property transfers require additional steps. Do not include account numbers, social insurance numbers or private beneficiary information in a public website form.

This article is general information as of October 16, 2026, not legal, tax or financial advice. Rules and circumstances can change. Contacting the firm does not create a lawyer-client relationship.