Can creditors of a deceased person claim RRSP proceeds in Ontario?

Whether a deceased person's creditors can claim RRSP proceeds depends largely on how the RRSP beneficiary is designated.

If the RRSP proceeds are paid directly to a named individual beneficiary (other than the estate), those proceeds generally pass outside the estate. Creditors of the deceased typically cannot claim against assets paid to a beneficiary directly — those assets belong to the beneficiary personally and are not part of the estate available to creditors.

However, if the estate is named as beneficiary, or if there is no valid designation, the RRSP proceeds form part of the estate. Estate creditors have priority over beneficiaries and must be paid before any distribution. This means creditors can access the RRSP proceeds in that scenario.

There are exceptions and nuances. In some cases (such as a preferential transfer made to defeat creditors), a creditor may have a claim even on non-estate assets — but this is fact-specific and uncommon for registered accounts.

This is one of the reasons why naming an appropriate individual as RRSP beneficiary, rather than the estate, is generally recommended. An estate lawyer can review your specific situation and advise.