Does the Will provide for charitable donations or bequests? If properly documented, they may represent tax deductions to the Estate.

As the executor of the Estate, you may deduct charitable donations made through the Will on the terminal return of the deceased, as long as you have an official receipt to support the donation. Like all tax deductible donations, for the receipt to be official, it must have the charity’s registration number with the Canada Revenue Agency clearly indicated on the receipt – this is generally a seven digit number followed by an R and then a four digit sub code e.g. 0001.

If the gift or bequest is to be made a later time, you should file a copy of the Will, a letter on behalf of the Estate to the charitable organization acknowledging the gift or bequest and its value, and a letter from the charitable organization acknowledging the gift, confirming that the gift and its value will be accepted, with the terminal return. The letter from the charitable organization should have the organization’s charity registration number with the Canada Revenue Agency on it as noted above.

So if there are charitable donations or bequests resulting from the Will, make sure you review the deductibility of these gifts with your professionals so the Estate can take full advantage of the tax deductions that may be available.

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