The TX19 Form is used to request a Clearance Certificate from the Canada Revenue Agency (CRA), in what is one of the last steps of the estate settlement process (in Quebec, the liquidation process). This document will certify that all amounts due by the deceased and the estate have been paid, including income tax (including on capital gains), Canada Pension Plan contributions and Employment Insurance premiums, along with any interest or penalties associated with these.
Although the executor can distribute assets prior to receiving the Clearance Certificate, they must ensure that if they do, the estate is solvent, ie, that it has enough funds to cover all liabilities; by distributing assets prior to receiving the Clearance Certificate from the CRA, the executor becomes personally liable for any unpaid amounts, up to the value of the assets distributed, plus interest.
To complete the form, review the pre-filled information and input the Trust Number you have previously obtained from the CRA when you filed the T3APP. Note that to submit the form, you must also have previously submitted the deceased's Final Return (T1) to the CRA.
The wind-up date is an estimate of when the final distribution will be made, sometime after the Clearance Certificate is received. We normally recommend anywhere from 3 to 6 months from today.
Once completed, our system will package the TX19 Form with the following documents, using the data logged and tracked in our platform:
- A copy of the last will and testament
- Final inventory, including adjusted cost base and fair market value
- A list of all distributions to date, as well as of the assets remaining under the estate's control
- A statement of Proposed Distribution, detailing how the assets will be distributed to the beneficiaries
- For Quebec: will search certificates from the Chambre des notaires du Quebec and the Barreau du Quebec
Once all documents have been reviewed, you can download the package and digitally submit it to the CRA.