I have a client that passed in 2019 and was issued a T4RIF for 2020. Are we able to file the T4RIF on a 2020 T1-70(1) Final Return or do we have to file a T3 for this slip?
Thank you in advance for your help!
I encountered such a situation a couple years ago and in that case it was a bank error re: not issuing the T4RIF for year of death.
"I have a client that passed in 2019 and was issued a T4RIF for 2020. Are we able to file the T4RIF on a 2020 T1-70(1) Final Return or do we have to file a T3 for this slip?"
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I would be both unwilling and unable to do anything at all taxwise with this slip until such time as the Executor provided me with a proper and complete copy of the Estate accounts. (The Executor is the client).
The final return for 2019 should have included the value of the RRIF, regardless of whether a slip was issued for 2019. There may be additional income or a deduction, depending on the change in the value of the RRIF from the date of death to the date it was liquidated. Reporting it on a 2020 return likely isn’t an option.
As far as “blame” goes, maybe the financial institution should have issued the slip sooner but it’s still the executor’s responsibility to report the RRIF value on the final tax return (2019). You can usually get that value from the investment company.
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I had a simailar case where the bank was negligent in closing the RIFF. I had peviously reported the balance of the RIFF on the finale return of the deceased. Income was earned on the RIFF because of the bank’s negligence. As the estate was settled, I ended up declaring only the income earned on the inheritors income tax returns.
@benoit.associes1
“As the estate was settled,”
Technically the Estate was not yet finalized, since obviously the Executor had not yet finished accounting for all the income of the Estate…
Technically, right Practically, finished.