It's interesting that you mention CRA, because when someone dies, you have to contact CRA and stop any HST credit that might be coming. You have to contact them with respect to a terminal return. Also, if income was received after the date of death, you have to contact a completely different department within CRA, which may require different documentation. I called my old law firm this morning and spoke to the estate section to confirm my memory, and that indeed is the case.
I have not had a conversation with the department you speak of specifically about that, but I have had practical experience with it. I know this bill will encourage them to refine those systems, and that would be a good thing.