09/03/2026
This is a situation I see come up often. Understanding how taxes work when you pass away is an important part of your plan.
You want to be fair to your kids. But sometimes well-intentioned RRSP decisions can create unintended outcomes.
Here's a scenario that can happen unintentionally:
One child receives the RRSP as designated beneficiary, while another child may inherit the family home through the Will and the estate. Taxes on the RRSP could potentially be paid from the estate, which might affect the child who inherited the home.
This kind of outcome is often unintentional. It's about understanding how beneficiary designations, estate distribution, and tax treatment can interact in ways that aren't always obvious.
The good news?
These situations can be spotted ahead of time. An advisor can help you see how your current setup might play out, so you can consider whether adjustments are needed to the beneficiary designations on your registered accounts before decisions are finalized.
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).
Whatever your goal looks like, you're not doing it on your own. We’re here to help you achieve it.
Learn more about how RRSP beneficiary choices can impact your estate. Read the article: https://spr.ly/6188B1fWH6
