T4A Death Benefit

Client’s mother died Dec 27/22.
Filed final return.
Filed T3 as final return of the trust Dec. 27/2023 (no income but property with no gains involved) Clearance Certificate received.
Now the client just received T4A to The Estate of “”“” for $2,500 moneys was distributed to her and sister after receiving clearance certificate.

Do I now file a T3 Adjustment Request?

Thank you folks

I’m quite sure there was another thread on the forum that answered that specific question a while ago. Perhaps if you use the search function, you’ll find it. :wink:

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It is income that needs to be reported. Clearance Certificates are only for the income and property that is reported on the T3. Additional property and income is not covered.

The trustee is liable for the tax if they distribute the full $2,500 to the beneficiaries.

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Thanks @ nezzer I will search again. Considering doing a T3 adjustment request and adding the $2500 there as there shouldn’t be any tax consequences as the payment came in 2023 and final return was Dec 27 2022

It’s the inheritors who will add theri share on their persona;l tax return, the same as if a T3 was not required.


I would amend the T3. Although you didn’t say I assume this the CPP death benefit. It would have been received Jan or Feb 2023, within your T3 period, and usually more beneficial to report on the T3 as opposed the the beneficiaries. There will be some tax.

The treatment mentioned by benoit.associes1 is accepted by Canada Revenue Agency due to an administrative policy.