RRSPs and RRIFs on death: Frequently asked questions

Under the Canadian income tax laws, an individual is deemed to have disposed of his or her assets, including registered retirement savings plans (RRSPs) and registered retirement income funds (RRIFs), for their fair market values on death.

The T4RSP or T4RIF sent to your personal representative/executor will indicate the fair market value of your RRSP/RRIF at the date of your death.

The value of your RRSP or RRIF, as indicated on the T4RSP/RIF slip, must be included in your income for the year of death.

This amount is fully taxable as regular income. However, as discussed in this bulletin, there are ways to defer this taxable income from your RRSP/RRIF upon death.