An estate may be a graduated rate estate (“GRE”) a maximum of 36 months following the deceased’s death. Suppose that a lump sum from the pension plan of the deceased is not received by the estate until beyond this 36-month period – and the executor is unable to distribute the income to the sole beneficiary before the end of the year of receipt. Can the Minister, where the late payment of the pension benefits is not the fault of the executor, extend the GRE status of the estate beyond the 36-month period?
CRA noted that the GRE definition does not provide the Minister with the discretion to extend the 36 month GRE period, nor does that authority exist anywhere else in the Act.