CRA considers that an estate can make a gift qua GRE before it has filed its first return

The definition of a graduated rate estate requires that the estate designate itself as a GRE in its first return of income as well as state the deceased’s SIN. CRA considers that s. 118.1(5.1), which references a gift made by a GRE, can apply to a gift made by an estate before it has filed its first year’s return.

Neal Armstrong. Summary of 8 February 2017 External T.I. 2017-0684481E5 under s. 118.1(5.1).