Disposition of estate property by the legal representative

As the legal representative, you may continue looking after the deceased's estate through a trust. If you dispose of capital property, the result may be a net capital loss. If you dispose of depreciable property, the result may be a terminal loss.

Usually, you would claim these losses on the trust's T3 Trust Income Tax and Information Return. However, in the first tax year of a deceased person's graduated rate estate, you can elect to treat all or part of these losses as losses of the deceased on the deceased's final return. A net capital loss realized in this first tax year cannot be applied to any tax year before the year of death. For more information, see "164(6) election" in Chapter 3 of the T4013, T3 - Trust Guide.

Forms and publications

• Guide T4011, Preparing Returns for Deceased Persons
• Guide T4037, Capital gains
• T3 Trust Income Tax and Information Return

Date modified:

2017-01-04