Skip to content
News & commentary

RRSPs and Your Estate

Home News & Commentary RRSPs and Your Estate
Jon Glougie

Jon Glougie

It’s that time of year again! The first 60 days of the year are also known as RRSP season. People are always focused on making last minute contributions to their RRSPs to ensure that they pay as little tax as possible now, while still saving/investing for retirement. What people don’t commonly think about, is what sort of tax liability that their RRSPs can present when passed on to a beneficiary(ies).

If you are planning on leaving your RRSP/RIF to anybody other than the aforementioned beneficiary(ies), it is important to understand the impact on your estate. Your RRSP/RIF will be transferred directly (and in its’ entirety) to your listed beneficiary(ies), however, your estate will still be left with a tax bill.

You will need to include the value of your RRSP/RIF in your final income tax return as income!

This means that, depending on the size of your RRSP/RIF, your estate may have a sizable tax bill to settle before the remainder of your estate can be distributed to the remaining beneficiaries. If your goal is to evenly split your assets amongst multiple beneficiaries, it is important to understand that an RRSP/RIF and non-registered assets left in the estate will be taxed differently.

If you would like to review your estate plan to ensure that your assets will be distributed as you intend them to be, let us know and we will be more than happy to help!


This information has been prepared by Luft Financial. Opinions expressed in this article are those of Luft Financial only and do not necessarily reflect those of HollisWealth®. Furthermore, this does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.

How do we elevate your wealth?

It begins with understanding your needs and creating a comprehensive and tailored financial plan to help reduce tax, manage risk and grow your portfolio over the long term. Learn more about how we help you achieve financial security and peace of mind.

News & commentary

Reviewing your Disability Insurance and Protecting Against the Catastrophic

When most people think about disability claims they think about broken bones and other physical injuries that usually heal with time, when some of the most common disability claims come from cancer, cardiac and mental health issues that do not go away.  Due to cost constraints many insurance plans will put emphasis on the first […]

Read more
Financial charts & stocks

September 2020 Portfolio Management Team Update

Market & Economic Environment It was full steam ahead for the equity markets in August, as investors anticipated a return to global growth, alongside a slowing trajectory of new COVID cases. This enthusiasm combined with favorable central bank policies led U.S. indices to post their best August performance in decades. The Dow Jones Industrial Average […]

Read more

Planned Giving

When you are reviewing your will and estate plan you should always review your life insurance options. Whether you are planning on transferring assets to loved ones, charities or a combination of the two, life insurance can provide benefits now and in the future. Life insurance proceeds are given directly to beneficiaries within 30 days […]

Read more