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We have inherited shares of oil & gas royalties. For the calendar year 2016, these royalties (in form of monthly cheques) have been withheld until the estate was cleared. Now the estate has been cleared and royalties have been transferred in our name (apparently), however the royalty cheques still come in under the deceased' name. (That's obviously an issue by the oil & gas company, which we have addressed)
The cheques are still accumulating, however have still not been forwarded to us by the Estate Executioner. We know that eventually we will receive all these cheques but we are not sure if they will be paid out before tax returns are due.

How do we claim the royalties dated in 2016, for the tax year of 2016? Can we roll these over as income for the following tax year? Do we need an exemption? We don't even know the amount that has been accumulated to date. We expect a few hundred $ month.

Any advice or guidance is much appreciated.
 

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Shouldn't the estate's executor be depositing them to the estate's accounts? I would expect the executor to deposit and then redirect the money until such time as the records are updated with the royalties co-op -- or whoever it is writing the cheques.
 

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The cheques are still accumulating, however have still not been forwarded to us by the Estate Executioner.
Agree with gardner that it sounds odd for the cheques to simply be accumulating. They can become stale-dated. They should be going into an estate account.

For tax purposes, I have no advice. One view might be that until whatever instrument under which royalties are being paid is transferred from the estate to the beneficiary, the beneficiary is not the recipient of royalties. The estate is the recipient. In due course, the beneficiary will inherit the accumulated royalties - simply a cash inheritance - and then start to receive the income stream under the instrument and be liable for whatever tax might be payable on that income. Others here no doubt have some experience with this. I am guessing.

Not sure I would want to be questioning the estate "Executioner". That could get one beheaded, or some such. I suppose the Estate Executioner can be recognized as the person with the black hood covering the face. Tread with care around that person.:)
 

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Not sure what is meant by "estate has been cleared"? Probate issued? Cleared to distribute residue?
I too would expect cheques to be deposited into the estate acc until distribution occurs under the terms of the will. This sounds like a share of a freehold mineral lease attached to underlying lands, in which case the will should direct whether title is to be transferred to beneficiaries, or the land sold, etc. It may be that the executor still has to get title transferred, O&G company notified of the change, and a reconciliation of amounts owing from the estate acc? Patience, it all takes time and eventually OP will get their share - assuming the will & executor are competent.
 
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