Estate Tax Accountant vs. Probate Lawyer: Who Handles What

Executors constantly assume the lawyer handles "everything," then get surprised by a tax bill or a missed filing. The truth is there are two different jobs, and knowing which is which keeps you from paying twice — or missing something that matters.

Two jobs people confuse

• The probate lawyer gets you the legal authority and steers the estate through the court and the law.
• The estate tax accountant makes sure the deceased and the estate are square with the tax authorities.

They overlap at the edges, but they're not the same person and not the same work.

What the probate lawyer owns

• Applying for the grant/certificate of appointment
• Interpreting the will and advising on legal duties
• The creditor process and resolving claims or disputes
• The legal mechanics of transferring and distributing assets

What the estate tax accountant owns

• The deceased's final personal return (the "terminal" T1 in Canada; the final Form 1040 in the US)
• The estate's own return for income earned during administration (a T3 trust return in Canada; Form 1041 in the US)
• Any estate tax return where it applies (US Form 706 for large estates; Canada has no estate tax but taxes capital gains via a "deemed disposition" at death)
• Securing a clearance before you distribute (a CRA Clearance Certificate in Canada; closing the IRS/state obligations in the US)

That clearance step is the one executors most often skip — and distributing without it can leave you personally on the hook for unpaid tax.

The Canada vs. US difference in one breath

• Canada: no estate/inheritance tax, but death triggers a deemed sale of assets, so capital gains can be the big number. The terminal return and a possible T3 are the core filings.
• US: an actual estate tax exists but only hits estates above a high federal threshold (plus some states); most estates instead deal with the final 1040 and possibly a 1041.

When you need both

A simple estate with a clear will and modest assets might need only an accountant (for the final return) and no lawyer — or vice versa. You generally want both when there's real estate, a business, investments with large gains, or any complexity. They work best in tandem: the lawyer clears the legal path, the accountant clears the tax path.

How to find each — and avoid paying twice

1. Define scope first. Ask the lawyer to confirm in writing that tax filings are not in their fee, so you don't assume coverage you don't have.
2. Find a CPA who does estates specifically — terminal and T3/1041 returns are specialized. Foxglove's directory lists estate-experienced accountants by jurisdiction.
3. Let them coordinate. Tell each who the other is; a five-minute hand-off prevents duplicated work and double charges.

Foxglove is a guide, not a law or accounting firm. General information, not legal or tax advice. We can help you find an estate-experienced accountant or lawyer in your jurisdiction.