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Email this1:11 pm
April 27, 2014
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I had several joint quarterly GICs with my mother who passed away after the second quarter of the term.
After passing, the GICs were transferred over to me.
The interest for the first 2Q was attributed to her account at the time, however when the T5s arrived, they attributed not only interest for Q3 to me (which is understandable), but interest for Q1 and Q2 as well. They refused to put the interest for Q1 and Q2 on my mother's T5.
Does this seem reasonable?
1:30 pm
October 27, 2013
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I suspect the institution does not have a way to generate T5s for a JTWROS owner who no longer exists on account. It is up to you to divide it up on the tax returns (yours and hers) and to include a letter in your Mom's Final T1 return explaining the split of the T5.
You have to file a paper T1 Final for your Mom anyway (unless Efiled by an accounting firm) and such tax returns often include a letter, e.g. Letter of Direction, showing tax slip allocations that are different from what appears on the tax slip itself.
Every Final T1 return CRA sees likely has some kind of allocation and wouldn't consider it unusual.
2:28 pm
April 6, 2013
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That's not reasonable. But, that is how the tax slips end up with a joint account.
When a joint owner dies, the deceased owner's name is deleted from the account. There is actually no transfer to a new account for the surviving owner. It is still the same account.
When the tax slip is generated later, the slip will be in the current name on the account only. Survivor and the executor have an exercise to allocate the income.
Helped one executor. Quite an exercise when it was a joint brokerage account with dividends received almost every month and realized capital gains/losses throughout the year of death!
Financial institutions don't seem to issue one tax slip for the period up to the date of death and then another tax slip for the rest of the year.
6:24 pm
December 18, 2024
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@GMH.
Out of principle…..yes.
But what is 50% of the amount of interest made in those 6 months?
Aren’t you going to personally benefit 100% of the interest?
Is Access CU “they”. If yes, take what you got a run, otherwise they just might screw it up on you big time if you succeed a change.
I would give CRA a call. CRA advised me that if a T5 is in one name only, it can still be split.
6:39 pm
October 27, 2013
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There is really no need to call CRA. The income shown on the tax slip has to be split to be accurate for T1 Final return and the OP's personal return. That is how it is 'always' done. An accounting for it (how the income was allocated) can be included on a sheet of paper included with the T1 Final for the deceased.
7:09 pm
April 27, 2014
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Thanks for the replies.
Hubert initially sent me 3 T5s: one for my individual account (my SIN), one for my mother’s account (now “estate”, her name primary, her SIN only) on which I was joint and one (“estate”, my name primary, my SIN only).
Not only did they attribute post-passing interest to me, but they also wrongly put some interest from the joint account on my individual account. After much back and forth they acknowledged their mistake, but would only agree to change T5s to move the disputed interest from my individual account back to the estate account with my name primary. The amount was not trivial: several k $. This does not change the total amount of interest attributed to my SIN, so don’t know if it is worthwhile, especially considering the nightmare other members experienced last year getting Hubert to correctly send amended T5s to CRA.
Whether I ask for amended T5s or not, can I split interest on the estate T5 between myself and my mother even though only my SIN appears?
8:12 pm
October 27, 2013
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GMH said
Whether I ask for amended T5s or not, can I split interest on the estate T5 between myself and my mother even though only my SIN appears?
I do not see why not but, and this is a guess on my part, you may need to be able to show a paper trail on correct attribution, i.e. beneficial owner for taxation purposes. CRA has a right to ask for it if they are suspicious about taxation issues.
I know this is not the place (thread) for it, but it is an example of the complications one can get into with JTWROS accounts. Primary SIN, secondary SIN, attribution, etc, etc. The account should only carry the SIN of the individual who is the beneficial owner of the account. I avoid joint stuff like that with anyone other than a spouse.
8:17 am
April 6, 2013
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GMH said
… After much back and forth they acknowledged their mistake, but would only agree to change T5s to move the disputed interest from my individual account back to the estate account with my name primary. The amount was not trivial: several k $. This does not change the total amount of interest attributed to my SIN, so don’t know if it is worthwhile, especially considering the nightmare other members experienced last year getting Hubert to correctly send amended T5s to CRA.
Whether I ask for amended T5s or not, can I split interest on the estate T5 between myself and my mother even though only my SIN appears?
Yes, one can split the income on a T5 slip with another taxpayer who is not named on the slip.
A T5 slip is issued to the "primary" holder of the account. That's just who the slip is sent to. Just because there's only one "legal" holder of the account (not a joint account) doesn't mean that there aren't others who have a "beneficial" interest in the account.
If the interest on the two T5 slips add up to the right total, then I suggest one not ask for amended slips. There is no point as there would be no change in the total interest reported.
It will take months to clear up with CRA if there is a screw up in doing the amended T5 slips and the interest ends up double reported by mistake. It is not clear to me how CRA matches up the amended slip (type A) with the original slip (type O). The T5 slips don't have a serial number or unique ID that the amended slip can reference.
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