Letter from CRA saying I owe $15,000. What do I do?

[harlonbc]

My father passed away in 2019. He had no will when he passed and had one property that was only in his name. After his passing, I became the estate trustee and my mom and I obtained the property.

We recently received a letter a few weeks ago from Canada Revenue Agency stating that the estate owned $15,000 in income tax debt. The letter stated that the amount was due immediately and if we do not pay the full amount or respond within 14 days, legal action may be taken. There is no information about this debt in the letter, e.g. from what year, records for support, nothing.

I spoke to the agent assigned to the case, and he told me that they had no person on record under my father’s estate and they had only sent the letter to his last known address. He said I needed to submit a form to be put on record, until then, he couldn't provide me with any information about the debt.

He said something to the degree of: if you don’t have the money there isn’t much we can do, but didn’t elaborate.

What should I do in this situation? Am I obligated to pay back this money? Should I submit the documents to be placed as a person of interest under the estate? Should I consult with a lawyer? I don't have this money and really cannot afford to pay this. They said interest would be accruing as long as the debt is outstanding. Any advice is appreciated in this matter.

 

[garfield156]

@harlonbc Is the letter legit? Does it have a stamp or one of thoes digital qr things? What number did you call? The one from the letter or straight from the CRA website?

 

[maximilianosss]

@harlonbc Sorry for your loss. Estate taxes upon death for secondary properties IS a thing, but maybe double check with someone to make sure it’s real. The aggressive language and threats of legal action make it sound kind of sus, as well as not giving you all the details. Normally the solution would be to revive a life insurance benefit so that you could pay the estate taxes, but if that doesn’t apply, it’s obviously not an option. You could borrow money from friends/family after explaining the situation, I guess. If you can’t pay the estate taxes (ASSUMING THIS IS REAL), the government essentially claims that property and sells it for cheap basically just to get their tax money. It’s a very disadvantageous situation for the seller/family because people know it’s an estate sale and the property is selling for way under value. Again, my condolences for your loss, something like this financial stress is probably coming at the worst time possible, so I hope it works out well.

 

[resjudicata]

@harlonbc If the estate doesn't have the assets then the CRA is up shit creek. You personally aren't liable for the debt. Consult an attorney specializing in estate law.