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Before making a major financial decision you
should consult a qualified professional.
The general rule for an RRSP or RRIF is that the value of
the RRSP or RRIF at the date of death is included in the
income of the deceased for the tax return for the year of
death. However, income tax may be deferred if the
beneficiary of the RRSP, RRIF, or estate is:
dependent child or grandchild under 18 years of age, or
dependent mentally or physically infirm child or grandchild
of any age.
In order for the tax to be deferred, the RRSP or RRIF
must be transferred to the RRSP, RRIF, or eligible annuity
of the beneficiary before December 31st of the year
following the year of death. Other conditions also
The Federal 2010
Budget made a change to also allow a rollover of a deceased individual's RRSP
proceeds to the Registered Disability Savings
Plan (RDSP) of a financial dependent infirm child or grandchild. This
was effective for deaths occurring on or after March 4, 2010.