Clearance Certificate From CRA
When and how an executor asks CRA for a clearance certificate on form TX19, documents to send, wait times, holdbacks and personal liability.
The short version
- A clearance certificate is CRA's written confirmation that everything the deceased and the estate owed has been paid. You ask for it on form TX19.
- Distribute the estate without one, and if tax turns up later, the executor is personally liable up to the value of what was handed out.
- Apply only after every return is filed and assessed and the tax is paid. Sending TX19 with the returns slows things down.
- CRA says to allow up to 120 days for a complete request. Executors often report waiting 4 to 8 months.
- Hold back enough to cover possible tax and costs, distribute the rest if the will and family allow, and pay out the holdback once the certificate arrives.
Clearance Certificate From CRA
Being an executor comes with one piece of paper worth more than most of the others: the clearance certificate. It's CRA saying, in writing, that it's done with the estate. Without it, an executor who hands everything to the beneficiaries is personally on the hook if CRA reassesses a year later, and beneficiaries are rarely quick to give money back. The process isn't hard. It is slow, and it can't start until the tax work is finished.
When to Apply
| Before you send TX19 | Done? |
|---|---|
| Final T1 return filed and assessed; see final tax return | Needed |
| Any optional returns and prior unfiled years filed and assessed | Needed |
| Estate T3 returns filed and assessed, if any; see estate T3 return | Needed |
| All tax, interest and penalties paid, or security accepted by CRA | Needed |
| No open objections, appeals or adjustment requests | Needed |
| GST/HST account closed with form GST352, if the deceased had one | If applicable |
Ready to ask for the clearance certificate?
Tell the assistant which returns have been filed and assessed, what was owing, and what the estate still holds. It checks whether you're ready for TX19, lists the documents, and suggests a holdback.
What to Send With TX19
- The will and any codicils, and the probate certificate or letters of administration (or certificate of appointment of estate trustee in Ontario).
- A list of assets at death, with each asset's cost and fair market value at the date of death.
- A statement of distribution: what has already gone out, to whom, and what's proposed for the rest.
- Beneficiaries' names, addresses and SINs or other tax numbers.
- Proof you're the legal representative, if CRA doesn't already have it on file.
Submit online through My Account or Represent a Client, using "Submit documents", or by mail to your regional tax services office. CRA sends an acknowledgement within about 45 days, then the certificate, or questions.
The Holdback: Distribute Most, Keep Some
Many estates distribute in two steps. After the final return is assessed, the executor pays beneficiaries most of their share and keeps a holdback for possible reassessment, the estate's own tax, legal and accounting fees, and the final T3. A common rule of thumb is to keep the estimated tax plus a margin. Once the certificate arrives, the holdback goes out. Executors with a cottage, rental or business in the estate usually keep more; see inherited property. The executor's full job list: executor tax responsibilities. Accounts that passed directly to named beneficiaries, like a TFSA, generally sit outside the estate; see TFSA after death, and for what probate costs, probate vs income tax.
Mistakes Executors Make
- Distributing everything right after probate. Probate is the province's process; CRA's comes later. Beneficiaries don't pay tax on what they inherit, but the estate has to first; see inheritance tax.
- Skipping the certificate for a "simple" estate. It's optional, but so is personal liability insurance against CRA.
- Forgetting unfiled past years. CRA expects every year to be filed, not just the year of death.
- Not counting the RRSP tax. An RRSP paid to a named child still creates tax on the final return that the estate pays; see RRSPs at death.
- No account for the estate. Run everything through an estate bank account; it makes the statement of distribution easy. Estimate the bill with the estate tax calculator.
Clearance Certificate Questions
What is a CRA clearance certificate?
A certificate confirming that all amounts the deceased and the estate owed to CRA, including income tax, GST/HST, interest and penalties, have been paid or secured. It protects the executor from personal liability for those amounts.
Is a clearance certificate mandatory?
Not legally required, but an executor who distributes property without one is personally liable for unpaid tax up to the value of the property distributed.
How long does a clearance certificate take?
CRA asks you to allow up to 120 days after it receives a complete request, and longer if an audit is needed. Many executors report waiting four to eight months.
When should I apply for a clearance certificate?
After all required returns have been filed and assessed, all amounts owing have been paid or secured, and no objections or appeals are pending. Do not send form TX19 with the tax returns.
Can I distribute part of the estate before the clearance certificate?
Yes. Many executors make an interim distribution and keep a holdback large enough to cover possible tax, interest and costs until the certificate arrives.
Sources: CRA, Apply for a clearance certificate; CRA, Doing taxes for someone who died (brochure); Lawyerinfo, Clearance certificate wait times. Checked October 2026. The 4 to 8 month range is reported experience, not a CRA standard. Holdback amounts depend on the estate; get advice for complex estates.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.