After the Office of the Public Trustee for the Province (the “Trustee”) finalized the Estate of the deceased, received a CRA clearance certificate, and closed its file, with the 36-month graduated rate estate (“GRE”) period then expiring, the Trustee was contacted by the Government of Canada Pension Centre that a pension payment was still owing to the deceased, which amount was then paid and received by the Estate on the last day of the Estate’s taxation year, and distributed by the Trustee in the following taxation year. Regarding whether the amount was deductible under s. 104(6) in the year of receipt, the Directorate stated:
Whether or not the amount was payable to the beneficiary, and the beneficiary was, on the last day of the Estate’s taxation year, entitled to enforce payment of the income received by the Estate on that same day is a question of law and fact which only the Trustee can determine.
If, based on all the facts and surrounding circumstances, the Trustee determines that the beneficiary was, on XXXXXXXXXX, entitled to enforce payment of the lump-sum amount received by the Estate, the beneficiary is required to include the gross amount of the lump sum benefit in their income for their 2019 T1 Income Tax and Benefit Return (T1 Return) pursuant to subsection 104(13).