CPP Death Benefit — Montreal CPA Firm Near You: Eligibility, Payment Amounts, Applications, Deadlines, and Tax Reporting

The Canada Pension Plan (CPP) death benefit is a one-time, lump-sum payment made to the estate or an eligible individual on behalf of a deceased CPP contributor. This payment helps estates and families cover immediate expenses after death and forms an important part of settling a person’s financial and tax affairs. For many executors and family members, understanding when the benefit applies, who can receive it, how much is payable, and how to report it for tax purposes is essential to completing estate administration correctly and avoiding delays.

This guide provides a full overview of the CPP death benefit, including recent changes effective January 1, 2025, eligibility rules, amounts, application procedures, the top-up rules, and the order of priority for applicants. It also explains how to report the benefit on a tax return and how contributions made under the Quebec Pension Plan (QPP) or international agreements affect eligibility.

Legal and Regulatory Framework

The CPP death benefit is governed by the Canada Pension Plan legislation, which outlines the eligibility requirements, contribution rules, payment amounts, and application procedures. To qualify for the death benefit, the deceased must have made contributions to the CPP for at least one-third of the years in their contributory period, with a minimum of three years, or for at least 10 calendar years in total.

For deaths occurring on or after January 1, 2025, the CPP death benefit includes a top-up amount. To qualify for the top-up, the deceased must qualify for the standard benefit, must never have received a retirement pension, disability benefit, or post-retirement disability benefit under the CPP or QPP, and must not have a surviving spouse or common-law partner eligible for a survivor’s pension.

When CPP contributions do not meet the minimum thresholds, international social security agreements may allow contributions made in other countries to be counted toward eligibility. For individuals who contributed to both CPP and QPP, contributions are combined to determine the death benefit amount.

Executors and administrators must submit legal documentation proving authority before applying on behalf of the estate. When no executor exists, priority rules determine who may apply.

Key Court Decisions

Canadian courts have consistently recognized that benefits under the CPP must be administered strictly according to statutory requirements. Court rulings reinforce the need for accurate documentation and timely applications, especially when disputes arise regarding eligibility, contribution history, or the identity of the proper applicant.

Courts have also held that Service Canada has the authority to request supporting documents and to deny applications when eligibility is unclear. When beneficiaries disagree with a decision, they may request reconsideration, and courts have upheld this right as part of procedural fairness.

Decisions involving Quebec pension coordination emphasize the necessity of reviewing both CPP and QPP contributions when determining eligibility. Courts have reinforced that improper applications or missing documentation can delay payments, making it crucial for executors and family members to provide complete and accurate information.

Why CRA and Service Canada Target This Issue

CPP death benefit applications are closely monitored because they are often filed during emotionally stressful times and are frequently incomplete or delayed. Common challenges include:

• missing contribution history
• uncertainty about who can apply
• incomplete documentation
• unreported foreign pension contributions
• questions about Quebec residency
• misunderstanding of the top-up eligibility rules
• late applications
• confusion over how the payment affects the estate tax return

Service Canada must verify applicants’ legal authority, confirm contribution years, and determine whether a surviving spouse qualifies for a survivor’s pension. Because these rules affect the amount and timing of the benefit, clear documentation is essential.

Mackisen Strategy

Mackisen supports executors, families, and beneficiaries through every step of the CPP death benefit process. We begin by reviewing the deceased’s contribution history, confirming CPP and QPP eligibility, and determining whether the top-up applies. For individuals who worked abroad, we consider international social security agreements to ensure contributions made outside Canada are properly recognized.

We assist executors with completing applications online or by paper, preparing supporting documents, and communicating with Service Canada if additional information is required. When no executor exists, we identify the correct applicant according to the priority rules and help individuals submit their claim accurately.

We also coordinate the tax reporting portion of the benefit, ensuring that the recipient includes the payment correctly on their own tax return. If the estate is receiving the benefit, we integrate it into the estate accounting and ensure that the amount is handled properly when preparing final and trust returns.

If an application is denied or a reduced amount is granted, Mackisen helps clients request reconsideration. Our detailed documentation strengthens the appeal and improves the chances of resolving issues quickly.

Real Client Experience

A family managing an estate contacted Mackisen after discovering that the deceased had contributed to both CPP and QPP while working in different provinces. We reviewed their contribution history, coordinated with Retraite Québec, confirmed eligibility, and secured the full death benefit.

Another client applied for the benefit without realizing the deceased might qualify for the 2025 top-up. After reviewing the records, Mackisen determined that all conditions were met, prepared a revised application, and secured the full $5,000 benefit.

A family friend who paid funeral expenses was eligible to apply because no will existed and the executor had not applied within the first 60 days. We prepared the application and ensured the payment was issued correctly according to the rules of priority.

In cross-border cases, such as individuals who lived or worked in the United States or Europe, we applied international social security agreements, ensuring that foreign contributions helped satisfy eligibility.

Common Questions

How much is the CPP death benefit?
For deaths on or after January 1, 2025, the maximum amount is $5,000, consisting of a $2,500 basic amount plus a possible $2,500 top-up.

Who can apply for the death benefit?
The executor applies first. If there is no executor or if they do not apply, priority goes to the person paying funeral expenses, then the spouse, then the next of kin.

How soon should I apply?
As soon as possible. Executors should apply within 60 days of the date of death.

Does the deceased need to have contributed to CPP?
Yes. The minimum contribution requirements must be met, but international agreements may help satisfy these rules.

Is the top-up automatic in 2025?
No. It applies only when the deceased meets additional eligibility criteria.

How do I apply?
Online via My Service Canada Account or by mailing Form ISP1200 with supporting documents.

How long does it take to receive payment?
Approximately 6 to 12 weeks after Service Canada receives a complete application.

Can the decision be appealed?
Yes. Individuals may request reconsideration.

How is the benefit reported on a tax return?
The recipient must report it on their own tax return, not on the deceased’s final return.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses stay compliant while recovering the taxes they’re entitled to. Whether you’re filing your first GST/QST return or optimizing multi-year refunds, our expert team ensures precision, transparency, and protection from audit risk.