I disagree with that answer from four years ago. These are not self-employed earnings, but earnings from employment. The estate is required to issue a T4 unless the estate trustee is in the business of administering estates such as an accounting professional. As part of the services of their office, these professionals would be entitled to deduct any expenses applicable to earning their fee.
For non-professionals, applicable payroll deductions are supposed to be made by the estate and that includes both CPP and EI. As in any other business, the estate (acting as the employer) is required to remit the employer portion of both those deductions while the executor (as an employee) receives the net amount of his fee after deductions.
This is a pain six ways from Sunday since administering the estate is usually a one-shot deal and nobody wants to go to the hassle of applying for a business number for what usually amounts to exactly one pay cheque. I'm not a lawyer, but have been told that one way to get around this annoyance is for the will to include a specific gift to the named executor and this will be a non-taxable event since it is a bequest. I would imagine there will be something in the will to stop the executor from both collecting this extra bequest and also helping themselves to an additional fee as well..
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