I have a client who passed away December 2022. Family member did final return, missed a lot of things. I prepared an adjusted return and had to mail it in October as the previous one was on paper. Adjusted return had capital gains for sale of land and claimed nursing home costs. The widow was 96 years old. In October, the executor sent in payment for the taxes owing. Nov 24, CRA send letter, we have this money, don’t think we need it, give us and answer. Sent reply over internet Dec 5. Along the way, CRA decides to return the $$ even thought they got the explanation well within the 30 day limit. Now they send out a letter saying they have received the nursing home invoices along with the adjusted return but can’t process the adjusted return because they need either a 2201 or a letter from “a medical practioner” stating the she needed to be in a nursing home. Do they think nursing homes let people live there just because they want to?? Don’t they think that a 96 year old widow might need some looking after??? After spending 2 hours on the phone with different folks at CRA, the end result is I have to get that letter or a 2201 for someone who passed away a year ago. Anyone ese run into this type of problem? If so, how did you solve it?
Although you might think everyone at 96 years of age needs help my neighbour’s father died at 103 years of age and was still living on his own with his 95 year old wife. So I wouldn’t be too quick to generalize.
The rules regarding claiming the expenses have not changed in a very long time and the form T2201 (not 2201) has always been a requirement and you should have known and applied for this first. Please refer to the links below.
I had a similar case this year. The person died and had never applied for a Disability Tax Certificate. The executor went to the deceased’s doctor with the application form. The doctor completed it, I submitted it and CRA approved the DTC for the past 10 years. I did not prepare all of the original returns but amended returns and Change My Return, were utilized and all have been successfully accepted and assessed.
You have some work ahead of you but all billable time. 
Not surprised. A client once received a letter from Revenue Quebec requesting a renewed medical certificate for his daughter who had down’s syndrome
Thanks for your reply. I had not done any of the previous returns for this lady, but her daughter, the executor has been my client for decades.
I have had several nursing home residents as clients and they did not have DTC’s and CRA never questioned their nursing home claims. I too know of elderly folks still living on their own at age 100. What struck me as odd about this is why CRA would think that a nursing home would have a resident who really didn’t need to be there – for years.
Thank you for your kind advice. If I have any more nursing home residents, I will be sure to have them apply for DTC.
Pat Gamborg
Not sure if it’s the same across the country, but certainly in Ontario one cannot get into a nursing home or “Long Term Care” facility without first being deemed eligible (i.e. needing the care). CRA really shouldn’t be wasting everyone’s time asking for documentation in these cases, but…
That said, you should probably be able to get something from the former Dr. or maybe even one of the nursing home’s staff?
Agree. However, we have found most care facilities have a Doctor who will fill in the DTC application and we get that processed. Then there is no question. Also, the client gets the additional benefits of the DTC as well.
Although beware you can’t claim the disability tax credit and nursing home fees and usually the nursing home fees are higher. I have had the CRA question nursing home fees but they just want the invoice. I have never had them question the fees because they didn’t have a 2201 on file.
CRA allows up to $ 10,000 for Attendant Care + the DTC
If you try to claim attendant care without a DTC, CRA will require a letter to verify claim. Which is silly, as this conversation started, because you cannot get into an assisted living facility without being assessed.
Thank you. That was my feeling. There are few enough beds already that a nursing home would not take in folks who didn’t need to be there. CRA sometimes has the weirdest rules.
Pat Gamborg
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