Using Form T2019 for an RRSP Death Rollover in Canada

When someone dies holding an RRSP, the tax bill can be large, and it usually lands on the deceased's final return. If you are a surviving spouse, partner, or dependent child, there may be a way to move that tax onto your own return and defer it by rolling the money into a registered plan.

Form T2019 is one of the tools that makes this possible when the money is paid to the estate rather than directly to you. This article explains what the form does, who can use it, and the timing rules around the rollover.

This article covers Canadian federal tax law, which applies in every province.

What Form T2019 does

Form T2019 is called Death of an RRSP Annuitant – Refund of Premiums. A payment to the estate counts as a refund of premiums only if a qualifying survivor is a beneficiary of the estate and the legal representative and the survivor jointly file the form.

The Income Tax Act supports this in s. 146(8.1). It lets the legal representative and an individual jointly designate, in prescribed form, that a payment is a refund of premiums, and the designated amount is then treated as received by that individual.

The effect is that the income is taxed to the survivor instead of the final return. The deceased's deemed income is also reduced by the refund of premiums paid to qualifying survivors.

When you need it, and when you do not

Without any election, the CRA treats the annuitant as having received the fair market value of the RRSP property immediately before death, and that amount goes on the final return. If the RRSP simply pays you directly as a qualifying survivor, the amount is a refund of premiums that you include in your own income and can then deduct if you transfer it.

The joint form matters mainly where the money goes to the estate, or where the paperwork otherwise does not already treat you as the recipient. Whether your situation needs it depends on how the plan and the will are set up, so confirm with the estate's lawyer or accountant.

Who is a qualifying survivor

A qualifying survivor is the deceased's spouse or common-law partner, or a financially dependent child or grandchild. The rules for dependent children and grandchildren are narrower than many people expect.

A dependent child or grandchild may roll over a refund of premiums even if the deceased left a spouse or common-law partner. Non-resident dependants may qualify if they received significant financial support from the annuitant, but a written request to the CRA tax services office is needed.

Rollover timing and where the deduction goes

• The transfer must be completed in the year the money is received or within 60 days after the end of that year.
• A transfer to an RRSP requires the survivor to be 71 or younger at the end of the year of the transfer.
• A survivor past that age limit transfers to a RRIF or annuity instead.
• A survivor generally includes the refund of premiums in income and deducts it by transferring it to their own RRSP (line 20800 with Schedule 7) or to a RRIF, RDSP or annuity (line 23200).

Line numbers can change when the CRA updates its forms, so check the current return and guide.

For a RRIF, the equivalent joint designation is made on Form T1090, which lets a qualifying survivor be taxed on RRIF amounts paid to the estate.

What to do next

• Get the plan statements and any beneficiary designation for the RRSP or RRIF.
• Confirm whether the money is going to you directly, to someone else, or to the estate.
• Work out whether you fit the qualifying survivor definition, especially for a child or grandchild.
• Ask the legal representative to complete the joint form with you if the estate is receiving the payment.
• Diarize the deadline for the transfer, and keep copies of every slip and form.
• Ask a lawyer or accountant to confirm how the amounts should be reported.

Frequently asked questions