Comments on: Does Debt Survive Death? https://www.hoyes.com/blog/does-debt-survive-death/ Hoyes, Michalos & Associates Inc. | Ontario Licensed Insolvency Trustees Thu, 07 Apr 2022 16:12:13 +0000 hourly 1 https://wordpress.org/?v=6.5.3 By: J. Douglas Hoyes, CA, LIT https://www.hoyes.com/blog/does-debt-survive-death/#comment-196 Mon, 05 Sep 2016 14:19:49 +0000 https://www.hoyes.com/?p=5822#comment-196 In reply to Murray H..

Hi Murray. This is a complicated question. The short answer is that CRA would be entitled to whatever funds are in the estate.

The longer answer is that the estate presumably now has two creditors: CRA and the relative who “loaned” the estate money to repay the other debts. In that situation it becomes a question of priority, and those questions are often solved with a bankruptcy or a consumer proposal. While it is possible for the estate of a deceased person to file a bankruptcy that would only make sense if the amounts were significant, and no other options exist. I would suggest talking to a licensed insolvency trustee or a lawyer for further guidance.

]]> By: Murray H. https://www.hoyes.com/blog/does-debt-survive-death/#comment-195 Fri, 02 Sep 2016 03:18:38 +0000 https://www.hoyes.com/?p=5822#comment-195 I have a question regarding a deceased . If following the death a relative pays off all of the outstanding debts (credit cards etc.), can the relative be paid back from the estate before an outstanding debt to CRA ? The debts were repaid prior to receiving a notice of reassessment regarding a balance in the deceased RRSP home loan which was outstanding at date of death. If the relative is repaid there would not be sufficient funds to pay CRA in full.

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