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Is an interest-bearing account part of my estate?

Yes. The account and any accrued interest form part of the estate, and the interest is taxable income on the final return.

This is legal information only. For advice on your own circumstances, speak to a lawyer.

Yes. The account and any accrued interest form part of the estate, and the interest is taxable income on the final return.

The Canadian position

Interest is reported on the final return regardless of any religious treatment.

The Islamic position

Where interest has accrued, scholars commonly direct that portion to charity rather than to the heirs. That is achieved practically through a bequest or by agreement among the heirs — Canadian law will not do it automatically.

Researched — the schools differ

All four schools treat unlawful gain as something to be got rid of rather than enjoyed, and all four hold that an heir who has no idea how the deceased earned his money takes it lawfully — that much the Kuwaiti Encyclopaedia records as ijma‘. Where they differ is what the heirs must do when the tainted amount is known, which is exactly the Canadian case, because a bank statement shows it to the cent. The Hanafi school puts it as the better course and turns on whether the money is identifiable; the Shafi’i school has the heir extract the unlawful portion by his own best estimate; the Maliki position, in Ibn Rushd al-Jadd’s words, is that inheritance does not make unlawful money wholesome at all; Ahmad’s reported rule turns on how large the fund is.

All four Sunni schools researched and sourced. Reviewed 2026-09-01. Full positions, evidence and sources — Interest money in the estate — what must the heirs do?.

Note

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.

Scholarly & institutional references
  1. Shari'ah Standards — AAOIFI
  2. Egyptian Dar al-Ifta — Dar al-Ifta al-Missriyyah
Canadian legislation & government
  1. What to do when someone has died — Canada Revenue Agency
  2. Income Tax Act, RSC 1985, c 1 (5th Supp) — Justice Laws Canada
Further reading — Treadstone Law
  1. Deceased final tax return estate taxes ontario — Treadstone Law
  2. Trustee compensation taxable income — Treadstone Law
  3. Rrsp contribution deceased persons final return canada — Treadstone Law
  4. Disability tax credit deceased persons final return canada — Treadstone Law
  5. Wills & estates practice — Treadstone Law