- On death, the annuitant is treated as having received the fair market value of the RRSP immediately before death, and that amount is reported on the final return.
- If a spouse or common-law partner is the designated sole beneficiary and everything is transferred directly to a qualifying plan by December 31 of the year after death, only the spouse receives a T4RSP.
- If the proceeds go to the estate instead, the legal representative and the survivor must jointly file Form T2019 to get the refund of premiums treatment.
- Who is named as beneficiary, and how the transfer is made, changes the paperwork and the deadlines, so check before acting.
When your spouse or partner dies and leaves an RRSP, the tax rules can feel harsh at first. The default rule treats the plan as cashed out at death. The good news is that a surviving spouse can often move the money into their own plan and defer the tax.
This article explains the basic reporting steps in plain language. It is general information, not advice for your situation. The details depend on who is named as beneficiary, how the transfer is made, and the plan terms, so an accountant or lawyer should confirm your steps.
The starting rule: a deemed receipt at death
For tax purposes, the person who held the RRSP (the annuitant) is considered to have received the fair market value of the plan immediately before death. That amount is reported on the annuitant's final return.
If nothing else happened, this could mean a large amount of income on one final return. The spousal rollover exists to avoid that result when a qualifying survivor receives the funds and moves them into a qualifying plan.
Direct beneficiary route: the simplest path
Where a spouse or common-law partner is the designated sole beneficiary, and all of the RRSP property is transferred directly to a qualifying plan by December 31 of the year following the death, only the spouse receives a T4RSP.
In practical terms, the survivor, rather than the estate, is the person whose tax reporting is affected. The survivor's accountant should be told about the slip when the survivor's return is prepared.
- Check who is named as beneficiary on the plan itself, not only in the will.
- Confirm with the plan issuer that the transfer will be made directly to the survivor's qualifying plan.
- Note the December 31 deadline for the year after death.
- Keep copies of all transfer paperwork for the final return and the survivor's return.
Estate route: when the proceeds go to the estate
Sometimes no beneficiary is named, or the estate is named. In that case the proceeds go to the estate, and a refund of premiums to a qualifying survivor requires the legal representative and the survivor to file Form T2019 jointly.
The transfer to the survivor's RRSP or RRIF must be completed in the year it is received or within 60 days after the end of that year. What a missed date would mean for the tax is worth confirming with an accountant, so this is a date to diarize early.
The executor (legal representative) therefore has a real role here. Estate decisions about who receives the funds, and whether the will and the plan agree, should be confirmed with a lawyer before money moves.
Comparing the two routes
| Point | Spouse is sole designated beneficiary | Proceeds go to the estate |
|---|---|---|
| How the transfer works | All RRSP property is transferred directly to a qualifying plan | Legal representative and survivor act together |
| Slip or form | Only the spouse receives a T4RSP | Form T2019 filed jointly |
| Key timing | Transfer by December 31 of the year after death | Complete in the year received or within 60 days after year-end |
Contributions after death
No contributions can be made to the deceased's plan. The legal representative may contribute to the surviving spouse's RRSP in the year of death or within 60 days after the end of that year.
This can matter if the deceased had unused contribution room or was making contributions to a spousal plan. How much can be contributed depends on the deduction limit, which is generally unused room plus the lesser of 18% of prior-year earned income or the annual dollar limit, less any pension adjustment. An accountant can work out the figures.
What to do next
- Locate the RRSP or RRIF statements and the beneficiary designation form.
- Ask each plan issuer who is named and what their transfer process is.
- Tell the estate's accountant early so the final return can reflect the correct amounts.
- Diarize December 31 of the year after death and the 60-day window after year-end.
- Speak with a lawyer if the will, the designation and the family wishes do not line up.
Frequently asked questions
Is an RRSP taxed when the owner dies?
The annuitant is treated as having received the plan's fair market value immediately before death, reported on the final return. A transfer to a qualifying surviving spouse can defer that tax, as described above.
What slip does the surviving spouse receive?
If the spouse is the designated sole beneficiary and all the property is transferred directly to a qualifying plan by December 31 of the year after death, only the spouse receives a T4RSP.
What if the RRSP proceeds go to the estate?
A refund of premiums to a qualifying survivor then requires the legal representative and the survivor to file Form T2019 jointly. The transfer must be finished in the year received or within 60 days after year-end.
Can the executor contribute to the survivor's RRSP?
The legal representative may contribute to the surviving spouse's RRSP in the year of death or within 60 days after year-end, but nothing can be contributed to the deceased's plan.
Sources
- CRA – How contributions affect your RRSP deduction limit — canada.ca
- CRA – RC4177 Death of an RRSP annuitant — canada.ca
- CRA – Contributing to your spouse's or common-law partner's RRSPs — 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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