1.6 Certificate authorizing the distribution of property

The liquidator of a succession has to file form MR-14. A-V, Notice Before Distribution of the Property of a Succession, before distributing the deceased person's property. If the succession is required to file the Trust Income Tax Return (form TP-646-V), the liquidator must also file form MR-14. A-V before distributing the post-death income.

Forms MR-14. A-V and MR-14. B-V can be printed from our website.

You can file form MR-14. A-V at the same time as the income tax returns for the type of distribution for which you are requesting an authorization certificate. In other words, to obtain a certificate authorizing you to:

• distribute the deceased person's property, you must file the deceased person's income tax return(s) (form TP-1-V) for the year of death;

• distribute the succession's post-death income, you must file the Trust Income Tax Return (form TP-646-V) for the taxation year(s) beginning after the death and ending on the date the succession was liquidated;

• distribute the deceased person's property and the succession's post-death income, file the deceased's income tax return(s) (form TP-1-V) for the year of death, as well as form TP-646-V for the taxation year(s) beginning after the death and ending on the date the succession was liquidated.

If you have not already done so, you must send a copy of a document proving that you are the liquidator of the succession.

Anyone who distributes another person's property without having first obtained a certificate authorizing them to do so becomes personally liable for any fees, duties, interest and penalties payable under a fiscal law (including any amounts that may become payable within the next 12 months), up to the value of the property distributed. However, in the case of a succession, the liquidator of a succession may pay urgent or essential expenses (to a maximum of $12,000) before filing form MR-14. A-V without incurring any liability. These expenses can result directly from the death, such as funeral expenses, or they can be made in the interests of the succession (electricity, gas or telephone expenses).

GST/HST clearance certificate

If the trust is a GST/HST registrant, the person that distributes the property of another person must complete the Application for a GST/HST Clearance Certificate (form FP-352-V) to obtain a GST/HST clearance certificate. Any person that distributes the property without having obtained a clearance certificate will be personally liable for paying the GST/HST up to the value of the property or money distributed.

Final return

The taxation year of a GRE that is wound up ends on the winding-up date (line 11), which is generally the date of the distribution of the property. You have to file the final return of the trust within 90 days after the winding-up date.