Specialized Tax Filing

Estate & Trust Tax Returns

Specialized tax services for final returns, rights or things, and estate trust filings after someone passes away.

Concept of justice, law and legal system

Tax Returns for the Deceased

When a loved one passes away, their taxes still need to be completed. The executor of the estate or next of kin is responsible for filing the deceased person's tax returns for the year of death and making sure any outstanding filings are taken care of.

Returns That May Be Required

  • Final T1 return – reports income from January 1 to the date of death
  • Optional "Rights or Things" return – for amounts owed to the person at death but not yet received (e.g., unpaid employment income, certain benefits)
  • Any unfiled returns for prior years – to bring the deceased's tax affairs fully up to date

Taxes at death can become complicated, but they can also create opportunities to reduce overall tax for the estate and beneficiaries when handled properly. Sigma Tax guides executors step by step so nothing important is missed.

Talk to Us About Final Returns

Trust Returns & Estate Taxes

After someone passes away, the assets they leave behind generally become part of their estate. For tax purposes, the estate is treated as a separate trust, and a T3 trust return is required to report the income earned inside the estate.

Why Estate Returns Matter

  • Income earned on estate assets (investments, property, etc.) must be reported on a T3 return
  • New rules for Graduated Rate Estates have made estate taxation more complex
  • Estate returns cannot be NetFiled like regular individual returns
  • Incorrect or incomplete reporting can lead to higher tax liabilities and penalties

With these rules, it's more important than ever for executors and trustees to get professional advice. Sigma Tax helps you understand what needs to be filed, which elections are available, and how to minimize tax where possible.

Book an Estate & Trust Consultation

How Sigma Tax Can Help

1

Review the estate structure and deadlines

2

Prepare required T3 trust and related returns

3

Advise on Graduated Rate Estate rules and elections

4

Coordinate the final T1 and estate filings to reduce overall tax

This information is general in nature and not a substitute for personalized advice. Please contact Sigma Tax to review your specific situation.