Does my RRSP or RRIF roll over to my spouse tax-free when I die?

Not automatically tax-free, but it can be tax-deferred if it's set up correctly. When you die, your RRSP or RRIF is normally treated as if it were fully collapsed and its value included as income on your terminal tax return. If your spouse or common-law partner is named as the designated beneficiary, or, for a RRIF, as the successor annuitant, the plan can instead transfer to them and the income inclusion is deferred — your spouse takes over the plan, or rolls the funds into their own registered plan, and pays tax later as they withdraw the money, the same way you would have.

The deferral generally depends on the beneficiary designation being in place and valid, not on the spouse simply inheriting through the will or as next of kin. If your spouse is instead named as a beneficiary of your estate generally, or the designation is unclear, the rollover can be jeopardized and the full value could end up taxed on your terminal return. Because getting this wrong can mean a large, avoidable tax bill, it's worth confirming your RRSP and RRIF beneficiary designations directly with the plan issuer and reviewing them whenever your family or estate plan changes.