06/11/2026
What happens to your RRSP when you pass away? It's something most people don’t generally think about until they're helping a parent settle an estate or updating their own plans.
The short version: Your account's value at death is typically included as income on the final tax return, which can mean a significant tax bill depending on the situation. The estate usually handles the tax, not the beneficiary receiving the funds. But you may be able to defer immediate taxation under certain situations.
How the RRSP is handled depends on who receives it.
If you designate a spouse or common-law partner as beneficiary, they can transfer the funds to their RRSP without immediate taxation.
If you designate someone else, the funds are typically paid directly to them. In some cases, like with financially dependent children or grandchildren, tax deferral options may be available.
When you designate a beneficiary on your RRSP, funds go directly to the beneficiary, avoiding probate fees and legal delays.
Whatever your situation looks like, you're not doing it on your own. We’re here to help you navigate it. Read the article for detailed information: https://ow.ly/rHqv50Z9qWy
*Note for Québec residents: You can designate beneficiaries through your Will. You can also designate them on the contract, if your RRSP is a type of insurance contract (like a segregated fund contract, insurance GICs, or accumulation annuities) Planning ahead can make things easier for the people you care about. Leaving clear instructions means less guesswork for your loved ones during an already difficult time.
