Executors and estates
What is a clearance certificate, and do I need one before paying out the estate?
Short answer
A clearance certificate is CRA's certificate that the deceased's and the estate's taxes are paid or secured. Yes, you need one before the final distribution. The law says you must get it before paying out the estate's property. If you pay out without one and tax is later owing, you are personally liable up to the value you paid out.
What does a clearance certificate protect?
The certificate ends your personal liability as executor for the deceased's and the estate's taxes. It does not stop CRA from reassessing later.
It covers only what was known when you asked. Property found later needs a new request. Even if you are the only beneficiary, ask for the certificate.
How do you apply for one?
Apply on Form TX19, after you have received the notices of assessment for the returns.
- One certificate covers the deceased's years to death. Another covers the estate's own T3 years.
- A trust created by the will, such as a spousal trust, needs its own certificate.
- CRA acknowledges a request in about 45 days. It decides in up to 120 days if the package is complete.
Can anything be paid before the certificate arrives?
You can pay the estate's bills as they fall due. Paying the beneficiaries is different. Two checkpoints must be cleared first: the 6 month holds after the grant, and the clearance certificate.
You do not need a new certificate before each distribution, as long as you keep enough property back to pay any amount owing. If beneficiaries press for money sooner, make any interim payment on your lawyer's advice. Support it with a written calculation of what you are holding back.
What happens if you pay out too soon?
The book gives an example. Joan pays each of three children $50,000 eight months after the grant, and keeps $20,000 back. The final return later shows $68,000 owing, most of it tax on a RRIF.
Joan would be personally liable for the $48,000 shortfall. She would also have to ask her brother and sister to return money. Because she waited for the certificate, the tax was paid from the estate first.
How long does it take?
The final return is due April 30 of the year after the death, or 6 months after a November or December death. CRA must assess it before you can ask for the certificate. CRA can then take up to 120 days to decide. One to two years for the whole estate is common. Telling the family this early can save hard feelings.
Related questions
Do I need a clearance certificate if I am the only beneficiary?
Yes, ask for it. It ends your personal liability, although it does not stop CRA from reassessing later.
Will executor insurance cover the tax?
Executor liability coverage generally excludes tax. For tax, your protection is the clearance certificate.
Do I have to advertise for creditors in Alberta?
No, but doing so can protect you. If you use Form GA15, creditors have at least 1 month after the last notice to come forward. After that, you are not personally liable for a claim you did not know of.
Drawn from Legacy Planning in Care, Chapter 21. Paying out the estate: the clearance certificate, accounts and compensation, by Derik Godbout, PBA, CEA, DMA. Reviewed October 2026. General information, not advice for your situation; rules and amounts change, so confirm current figures before you act.
Want this looked at for your family?
Derik Godbout is a Certified Executor Advisor and tax adviser in Edmonton. Legal documents are drawn by your lawyer.
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TaxOnTax™ Advisory Ltd. is a tax planning, accounting and executor advisory practice that also provides plain-language tax education. Derik Godbout is a PBA, CEA and DMA, Personal Tax Services Specialist™, not a CPA, lawyer, registered investment adviser, or licensed insurance professional. Nothing on this site constitutes personalized tax, legal, investment, or insurance advice. Always consult a qualified professional before acting on any information.