10 May 1999 GST/HST Interpretation HQR0001308 - Estate Problems Effecting Title

I refer to your email message and facsimile message of August 19, 1998 to Mr. Costa Dimitrakopoulos regarding "Estate Problems Effecting Title" in the XXXXX XXXXX[.] I understand that your office had issued a Goods and Services Tax (GST)/Harmonized Sales Tax (HST) Application Ruling on December 12, 1997 stating that, pursuant to section 267 of the Excise Tax Act (ETA), the sale of real property by a deceased individual's estate would be treated in the same manner as if the sale had been completed before the individual had died.

In your e[-]mail message you indicated that Mr. XXXXX the person to whom the ruling was issued, is of the opinion that, in the XXXXX property vests with the heir(s) immediately upon the death of the individual and not his estate. In a letter dated April 8, 1998, XXXXX requested that the matter be reviewed. You have requested our comments with respect to this matter.

It is the Department's position that an "estate" exists for GST/HST purposes in XXXXX XXXXX where an individual dies intestate. The Department's position is based upon the scheme set out in the XXXXX and the provisions of the ETA. We consider that, by operation of law, the personal representative (i.e. the court appointed administrator), acts on behalf of the estate of the deceased individual when he/she sells or distributes property and pays debts from the estate. We agree with the conclusion reached in your ruling of December 12, 1997.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 957-8222.