What happens to an RRSP if no beneficiary is named and the owner dies in Ontario?

If an RRSP has no named beneficiary (or the named beneficiary has died and no contingent beneficiary is designated), the RRSP proceeds fall into the deceased's estate at death. The full fair market value of the RRSP is included in the deceased's income for the year of death and is subject to income tax on the final T1 return — potentially at the highest marginal tax rate.

This is in contrast to RRSPs with a named surviving spouse or common-law partner as beneficiary, where the proceeds can be transferred to the survivor's RRSP on a tax-deferred basis. Without such a designation, the estate bears the full tax hit, which can be substantial for large RRSP accounts.

The after-tax proceeds then pass through the estate under the will or intestacy rules. This process also delays access to the funds: without a named beneficiary, the RRSP does not transfer quickly and requires estate administration, including probate where necessary. Keeping beneficiary designations current is one of the most impactful steps anyone can take in estate planning.