VICTORIABEARS

The cheque arrived last week as Rev QC needed certain information/proof of correctness of things. I thank you for all you help, it sounds like, given the beneficiaries tax situations, it would be best to reclaim tax paid by the estate, distribute the amount received so far, and when we get the tax refund(s), we will distribute that and the beneficiaries can enter it on their 2022 return and pay their own taxes having received a 3rd of the gross in total themselves. Everything I am told, and by cra, is that as funds were received in 2022, that's the year for the entry on the return. A statement to CRA that any late filing penalties are not appropriate as we only learnt of the matter in May 2021 and again funds were only received in 2022. We may well use some of the estate funds and pay a tax accountant to complete the t3's and review our beliefs from your wonderful help and my own research.

ok, getting clearer, one clarification, the T4a is dated tax year 2020 because rev qc says " The slips were produced for the year 2020 because the plan was deregistered that year." Can we submit for 2022 taxes and if so, do we wait until March 2023 to submit or can we submit the t3 for trust tax refund sooner? Thanks so much

Thank you very very much. What if we issue the t3's to beneficiaries showing 3rd of the gross and 3rd of taxes paid and they just show those numbers on their tax return, or is that too much of a work around ! . Oh.......big aspect, CRA said taxes are 53% as the 36 months has elapse since death, so I do not think any tax would be refunded to the estate as taxes have never been paid on this fund. But CRA did say we can do as I suggest(I think) if its beneficial tax wise to the 3 beneficiaries, which their tax rate should be less than 53%, which is 33% fed tax and 20% BC tax. Its to do with also this is a QPP lump sum, its the lump sum which triggers highest tax apparently. Thanks very much.

The $ were received in 2022 and this will be the FIRST time a T3 has been submitted, do the beneficiaries declare on their 2022 return. I suppose any hope this will be treated as inheritance is a pipe dream, but we are going to write with the zero T3 a letter pleading for it being treated as inheritance, everything I read says not, as it should have been claimed in 36 months after death which was July 2016. VERY much appreciate your help, sorry for the one more question. I can not see anywhere where the beneficiary info is listed I am sorry, and it also refers to a Schedule 9, talks of gifts and donations is this how cra refer to $ the beneficiaries get? t3ret-fill-21e.pdf

One hopefully final question it would indeed seem best to flow through beneficiaries, does each submit a t3 for their 3rd with their tax return and we submit nothing for the estate?

One hopefully final question it would indeed seem best to flow through beneficiaries, does each submit a t3 for their 3rd with their tax return and we submit nothing for the estate?

Thanks very much. It seems no one knew about this benefit, the QPP, and in 2021 rev qc wrote to the sister living in qc advising the $ existed. That' started the application process by my wife who is executor , we live in BC , and it took till now March 2022 for Rev QC to send the cheque and t4a etc. I am glad we can flow this through the beneficiaries as at least 2 of the 3 beneficiaries will not be in the 53% tax bracket. I wanted a reference as to why its 53% to show the beneficiaries why we are doing it this way. You are a very helpful person thank you. One hopefully final question it would indeed seem best to flow through beneficiaries, does each submit a t3 for their 3rd with their tax return and we submit nothing for the estate?

Thanks so much, yes the $2500 was obtained from the feds and declared in 2016 year of death. All that was done was a normal tax return for year of death, no trust return was done as it was never mentioned and the estate was small. so I do not understand "Consider the year end you chose for the initial trust return to determine what tax year you are filing on the T3" sorry. The year on T3 from Revenue qc was 2020. we have been told by cra to query this as why ?2020?, CRA said we should declare on a 2022 return as that's when funds received by the way. You are being very very helpful-thanks very much. Why is this income taxed at 53%, max tax rate and is it tax efficient to declare separately each 3rd by the beneficiaries?-thanks

I just got through to the CRA and after much research they told me this income is taxable at 53%(Culmination of fed and provincial) , rights and things cannot be used 6 years after death. The income can either be declared on a T3 by the estate or executor can issues 3 t3's to the beneficiaries splitting the amount and taxes paid by 3, this would typically result in lower taxes in accordance with the beneficiaries tax situation. taxes are payable of course but it seems better to allocate a 3rd to each benefiicary.

Thank you. Deceased resided in and paid taxes in Alberta. We were notified of existance of the qpp in May 2021 and this week we received the cheque and t4a and qc equivalent. The resulting $ will be split 3 ways by the beneficiaries , are these $ still treated as inhertance even though $ never received by deceased? We thought use of the word trust (It has been suggested we submit a T3) was a BC thing but do CRA treat all estates as trusts. Rights and things never came into the equation in 2017 when the final tax returns were submitted as it was believed her simple estate was done and dusted. No one knew of qpp possibility. Much appreciate your help-thank you. I looked at the guides and found contradiction. I am tempted to just submit a tax return, the t4a is dated for 2020 year.

deceased died in Alberta 2016. Left will, it was not known she had qpp payable. Deceased spent some time as a teacher in QC. Executor notified in 2021 that qpp balance was available, its has taken this long to satisfy revenue qc to send the cheque, They deducted both federal and QC taxes. Gross amount was entered in box 18 on T4A Last tax return for deceased (Estate of) was filed in 2017 for the 2016 year. How do we file this qpp income and T4A(& QC equivalent) information to CRA? The $ will be distributed as per the will to 3 beneficiaries, should they each declare a 3rd on their tax returns or is this submitted on an estate of tax return? Thanks SO much for any direction.