Yes, on a T3 return for income earned after death, separate from the deceased's final personal return.
The Canadian position
Yes, on a T3 return for income earned after death, separate from the deceased's final personal return.
Provincial law governs the detail, so confirm the position where the estate will be administered.
The Islamic position
The fixed shares apply to the net estate after funeral expenses, debts and any bequest capped at one third.
Where a Canadian instrument has no classical counterpart, treat it as a contemporary question for a qualified scholar.
The estate is fixed at death, not at distribution. The heirs become owners of the assets themselves the moment the deceased dies, without having to accept anything, so a later distribution is a partition of property they already own rather than the payment out of a valuation struck on the day it happens. On a debt-free estate the Kuwaiti Mawsu’a records no disagreement at all among the jurists that the estate and everything it has since earned belongs to the heirs, each according to his share — so post-death rent, profit and appreciation follow the faraid fractions. The schools do differ, and the difference is worth knowing, where the estate carries a debt: it decides whether the income earned between the death and the payment of the debt belongs to the heirs or is swept back to the creditors.
All four Sunni schools researched and sourced. Reviewed 2026-09-01. Full positions, evidence and sources — Is the estate valued at the date of death or the date of distribution?.
Making an Islamic will in Canada — province by province, and what makes one valid where you live →
This is legal information only. For advice on your own circumstances, speak to a lawyer.
Citations & sources
Every factual claim on this page traces to a source below. Details change — check the original source before relying on any figure, fee or legal position. Anything under “further reading” is related material, not a source for what is stated here.
- T3 Trust Guide — Canada Revenue Agency
- What to do when someone has died — Canada Revenue Agency
- Income Tax Act, RSC 1985, c 1 (5th Supp) — Justice Laws Canada
- Deceased final tax return estate taxes ontario — Treadstone Law
- Tax return for deceased person with no income canada — Treadstone Law
- Disability tax credit deceased persons final return canada — Treadstone Law
- Foreign tax credit deceased persons final return canada — Treadstone Law
- Wills & estates practice — Treadstone Law