Certificate Authorizing the Distribution of Property
As a rule, the property of a trust or succession cannot be distributed before the trustee or liquidator of the succession has notified us and obtained a certificat authorizing the distribution. To do so, a trustee must file form MR-14.B-V, Notice Before Distribution of Property, and a liquidator must file form MR-14.A-V, Notice Before Distribution of the Property of a Succession.
If a succession is required to file the Trust Income Tax Return (TP-646-V), the liquidator must also file form MR-14.B-V concerning the distribution of income after death.
A person that distributes the property of another person without having first obtained a certificate from Revenu Québec authorizing the person to do so becomes personally liable for any fees, duties, interest and penalties payable under a fiscal law (including any amounts that may become payable within the next 12 months), up to the value of the property distributed.
However, in the case of a succession, the liquidator of a succession may pay urgent or essential expenses (to a maximum of $12,000), before filing form MR-14.A-V and not incur any liability with regard to us. These expenses can result directly from the death, such as funeral expenses, or they can be made in the interests of the succession (electricity, gas or telephone expenses).
As a rule, we have four years as of the distribution date in which to assess any amounts for which the trustee or the liquidator of a succession is personally liable.
Before filing form MR-14.A-V or form MR-14.B-V, you must file the last required tax returns. In the case of a succession, you must file the income tax returns of the deceased person (the principal income tax return and the separate returns), and the trust's income tax return (if the succession is required to file such a return for income after death).
The taxation year of a graduated rate estate that is wound up ends on the winding-up date (line 11), which generally corresponds to the date of distribution of the property. You must therefore file the final return of the trust within 90 days after that date.
In the case of an inter vivos trust, you must file the final return no later than 90 days following the calendar year in which the trust was wound up.