If your husband dies, you or the executor must file his personal income tax return by April 30 of the year following his death, if death occurs between January 1 and October 31, or within six months of death if it occurs between November 1 and December 31, whichever is later. Any income tax returns for other years which have not yet been filed must be filed within six months of death.
The date of death can effectively be considered the end of the deceased’s tax year. Furthermore, any assets owned by the deceased are considered to be disposed of at fair market value on the date of death, resulting in taxes payable if there are any gains resulting from the disposal. If you are the beneficiary for your husband’s RRSPs, the amounts can be transferred to your own RRSP without tax consequences. Otherwise, the RRSPs will be considered to be disposed of at the date of death and rolled into the estate for tax purposes. The full amount of personal tax credits may be claimed on his behalf.
Arrangements should be made to have any benefit payments (GST/HST, Canada Child Tax Benefit, etc.) transferred to you.
For further and up-to-date information on filing for a deceased person it is best to consult with Canada Revenue Agency (www.cra-arc.gc.ca) or call 1-800-959-8281.