What does an executor do with the deceased's RRSP or RRIF in Ontario?

If the deceased named a beneficiary directly on their RRSP or RRIF (as most people do), that registered account passes outside the estate. The financial institution will pay it directly to the named beneficiary after seeing the death certificate. The executor generally has no role to play with those funds, and they do not form part of the estate for probate or distribution purposes.

However, the RRSP or RRIF's full fair market value at the date of death is included in the deceased's final income tax return as taxable income — even if it passes directly to a beneficiary. This tax obligation falls on the estate, not the beneficiary (unless the estate is insolvent). An executor must account for this liability when planning the estate's finances and ensuring sufficient assets remain to pay the resulting income tax.

Special "rollover" rules can defer the tax when the beneficiary is a surviving spouse, a financially dependent child or grandchild, or certain other eligible beneficiaries. An accountant familiar with estate tax matters should review the situation.