Estate Donation

Tax Topics
1

Dear all,

I understand that donations made by a Graduated Rate Estate (GRE) within 36 months after the death of the individual can be claimed on the terminal tax return of the deceased. My question is: what is the correct procedure for doing this? Should I submit a T1 adjustment request for the terminal tax return, or should I prepare an amended terminal tax return to claim the donation?

This is money donation to a Charity.

Your insights would be greatly appreciated.

Thank you!

2

The donation is included on the current year return. Then, there is a line on the donations page “For graduated Rate Estate and former Graduated Rate Estate only”, complete the amount carried back on this line, and then submit a T1 adjustment request.

The donation needs to be made within 5 years of date of death.

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3

Dear BertMulderCGA

Thanks for your prompt reply. I believe the “current year return” refers to the terminal tax return of the deceased. Yes, I found the line on the Donation page titled “Donations made by a graduated rate estate (GRE).” where I will enter the Estate donation amount and prepare a T1 Adjustment Request with the donation slip. There would not be any entries on the Estate T3 Trust Tax return.
Please correct me if I misunderstand your advice.
Thanks

4

No, by ‘current year’ I mean the year the donation was actually disbursed, in other words, the T3 return for the year.

5

Thanks for the clarification. Yes, I found your mentioned column on the T3 return Charitable Donation worksheet. On the first column on the Donation worksheet on the T3 Trust Tax return, I will enter the Charity organization name and amount , then on the “For GRD and former GRE only” column below, I will enter the same donation amount to designate such donation to be claimed on the terminal tax return. Afterward, I will prepare a T1 Adjustment request for the terminal tax return and file it with the donation receipt. Thank you very much for your assistance.

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