RRSPs and Your Estate
Most people are aware that they are able to roll their RRSP/RIF to a spouse, common-law partner or financially dependent child or grandchild with a mental or physical disability. What some people don’t always understand, is what happens to the RRSP/RIF if it is being left to anybody other than a spouse, common-law partner or financially dependent child. 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 iA Private Wealth. 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
February 2023 Portfolio Management Team Update
February 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth February 21, 2023 Market Review Global equities rebounded in January from the December selloff, getting 2023 off to a strong start, as investors grew increasingly confident that central banks would ease up on their interest-rate hikes. The TSX surged […]Read more
January 2023 Portfolio Management Team Update
January 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM®, Portfolio Manager, iA Private Wealth January 26, 2023 Market Review Global equities finished 2022 on a dismal note, capping an exceptionally challenging year as central banks around the world boosted interest rates sharply to combat the threat posed by surging inflation. The spike in […]Read more
2022 IAPW Tax Document Distribution Dates
2022 IAPW Tax Document Distribution Dates There are different mailing dates for different account types. Please click on the link below to view the expected delivery for both mail and online tax slips and reports. 2022 Important Yearend Information – Tax Document Distribution DatesRead more