- The deemed RRSP amount appears in box 34 of a T4RSP and is reported on the final return.
- Amounts rolled to a qualifying survivor reduce the income on the final return.
- Line numbers can change with form versions, so check the current T1 and guide before filing.
As legal representative, you will likely face the RRSP on the deceased's final T1 return. The plan's value is usually reported as income, even when the money has gone to someone else.
This article walks through where the amount comes from, where it is reported, and how rollovers and other situations change the picture.
This article covers Canadian federal tax law, which applies in every province.
Where the deemed amount comes from
When the annuitant of an unmatured RRSP dies, the CRA treats the annuitant as having received, immediately before death, an amount equal to the fair market value of all property in the plan. This is reported on the final return.
The Income Tax Act deems that benefit under s. 146(8.8), less certain amounts payable to a surviving spouse or common-law partner. The deemed amount is shown in box 34 of a T4RSP issued to the deceased for the year of death.
Where to report it
The amount is reported on the final return at line 12900, or line 11500 for RRIF-type reporting where applicable. Line numbers can change between form versions, so confirm them against the current T1 and guide.
The deemed amount is added to the deceased's other income for the year of death and taxed at graduated rates. The deceased bears the tax on the full value even when a named beneficiary receives the money, other than a qualifying survivor who receives a refund of premiums.
For a RRIF, the amount is shown in box 18 of a T4RIF and is also reported on the final return.
Rollovers and reductions
The deemed receipt does not apply where the spouse or common-law partner is designated in the RRSP contract or the will as sole beneficiary and all property is transferred to the spouse's RRSP or RRIF, or otherwise rolled over, by December 31 of the year following the year of death. The spouse then reports the amount received.
Where there is a surviving spouse and other beneficiaries, the spouse's share can be rolled over while the other beneficiaries' shares are included in the deceased's deemed income. Each recipient gets a T4RSP for their share, and the final return carries the box 34 amount reduced for amounts rolled to qualifying survivors. The Act allows this reduction by formula.
| Situation | Who is taxed |
|---|---|
| Estate or no designated beneficiary | Deceased, on the final return |
| Sole spouse beneficiary with a timely rollover | Spouse, on amounts received |
| Refund of premiums to a qualifying survivor | Survivor, unless transferred to a registered plan |
Income after death and value changes
Income from the plan paid after death is included in the income of the designated beneficiaries or the estate. A spouse or common-law partner has it reported in box 18 of a T4RSP, and other beneficiaries or the estate in box 28.
If the plan falls in value before the final payout, the legal representative can ask for the decrease to be deducted on the final return. If the final distribution is in the year of death, the deduction is claimed on line 23200, with a letter attached.
What to do next
- Collect the T4RSP or T4RIF slips for the year of death.
- Confirm who the named beneficiary is and whether any rollover is planned.
- Record the date-of-death value and every payment afterward.
- Check current line numbers on the T1 and in the guide.
- Ask a lawyer or accountant to review the return before it is filed.
Frequently asked questions
Which slip shows the RRSP amount?
The deemed amount is shown in box 34 of a T4RSP issued to the deceased for the year of death.
Where does the amount go on the return?
It is reported at line 12900, or line 11500 for RRIF-type reporting where applicable. Check current form versions, as line numbers can change.
Is the amount always taxed on the final return?
No. It is not when a sole spouse or common-law partner beneficiary receives a timely rollover, and it is reduced for amounts rolled to qualifying survivors.
What if the RRSP is paid to the estate?
The whole fair market value is the deceased's income on the final return, and the estate bears the tax.
Sources
- CRA – RC4177, Death of an RRSP Annuitant — canada.ca
- Income Tax Act, s. 146(8.8) — Justice Laws (federal)
- CRA – Examples: Death of an RRSP or RRIF annuitant — canada.ca
- CRA – Amounts paid from an RRSP or RRIF upon the death of an annuitant — canada.ca
- CRA – RC4178, Death of a RRIF Annuitant — canada.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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