Who reports bank interest earned before and after someone passes away?

Arsen Accounting Services · Question 195 · Sources checked October 29, 2026

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Interest must be allocated to the appropriate taxpayer and period. A year-end T5 covering the whole calendar year may include amounts belonging in the final personal return and amounts earned later by the estate or another owner.

Request a date-of-death breakdown

CRA requires relevant interest received before death and certain interest accrued to the date of death to be included in the final-return analysis, avoiding amounts already reported. Income earned by the estate after death is reviewed through the estate's reporting.

Some amounts may qualify for an optional return for rights or things, but that is a separate eligibility question. Do not assume every payment received after death belongs on the T3 or every slip under the deceased's SIN belongs entirely on the final T1.

Official guidance: [1], [2].

Reconcile the bank's annual total

For example, a GIC pays interest after the owner passes away, but part of the amount accrued beforehand. Obtain the accrual information and identify prior reporting. The payment date alone does not provide the entire allocation.

Gather investment details

• Date-of-death balances and accrued-interest statements.
• T5 and other slips issued for the year.
• Investment contracts and previous interest reporting.
• Estate-account statements and ownership changes.

Ask your preparer to create a reconciliation showing the total reported across the relevant returns. Keep that schedule with the slips so no amount is omitted or duplicated. Notify financial institutions of the passing through their required process and retain corrected statements where the original reporting needs clarification.