Whatever is in your RRSP at death gets added to your final tax return. This could leave you paying tax at a rate of around 50%. If you are married or have a common law partner, your RRSP can roll over to theirs without any tax, but they’ll face the same issue when they die. So, if half your RRSP goes to tax when you die…was it really yours?
Marc Sabourin is a Winnipeg-based Financial Advisor and Retirement Specialist with Harbourfront Wealth Management. His specialty is working with pre-retirees and retirees who are looking for retirement, investment, & tax advice.
Disclaimer: The views expressed are those of Marc Sabourin, Certified Financial Planner, and Investment Advisor, and not necessarily those of Harbourfront Wealth Management Inc., a member of the Canadian Investor Protection Fund
