What Happens to Your RRIF When You Die in Canada?

When a RRIF holder dies in Canada, the account usually goes one of three ways (a fourth, a rollover to a financially dependent child or grandchild, is covered below): it transfers seamlessly to a surviving spouse with no immediate tax, the proceeds are rolled over to a spouse’s registered account tax-free, or the entire balance is included as income on the deceased’s final tax return, potentially triggering a six-figure tax bill payable by the estate. Which outcome applies depends mainly on who is named on the account and in what capacity.

This distinction, successor annuitant versus beneficiary, is one of the most consequential decisions a RRIF holder can make. The designation can be made in the RRIF contract or in a will (in Quebec, generally only in a will; see below), and a designation in the contract passes the RRIF outside the rest of the estate. If your designation is outdated, missing, or set to “estate,” CRA will generally treat the full RRIF balance as income in the year you die.

This page covers the RRIF case: the successor annuitant, the rollover, and the tax when neither applies. The RRSP version is what happens to your RRSP when you die, and other estate and retirement-income guides are listed in the RRSP and RRIF guide directory.

The Key Distinction: Successor Annuitant vs Beneficiary

A RRIF paid to a beneficiary at death follows the same rollover rules as an RRSP (CRA guide RC4178). At death, an RRSP is taxed on the final return unless it goes to a qualifying survivor: a spouse or common-law partner (who can roll it into their own RRIF or an annuity at any age, or into their own RRSP if 71 or younger at the end of that year), a financially dependent child or grandchild with an impairment (RRSP, RRIF or RDSP), or another financially dependent child or grandchild (an annuity to age 18).

The tax outcome at death depends primarily on how the RRIF is designated. There are four possible situations, and the difference in tax consequences between the best and worst cases can be enormous.

The bottom two rows carry the largest tax cost. For a full comparison of these options, see our guide to successor annuitant vs beneficiary on a RRIF.

Option 1: Successor Annuitant

Only a spouse or common-law partner can be a RRIF's successor annuitant: named in the RRIF contract or the will, they take over the RRIF and its payments; if not named, they can still become the successor if the legal representative consents and the carrier agrees. It is the simplest way to transfer a RRIF at death. The account does not close. The surviving spouse simply becomes the new annuitant: the RRIF continues under their name, with the same investments and payment schedule, as though nothing happened. There is no income inclusion on the deceased’s terminal return and no contribution room required on the surviving spouse’s side.

One tradeoff worth knowing: because the account continues as the same RRIF, mandatory minimum withdrawals continue too, now paid to the surviving spouse, even if they don’t need the income yet. A younger surviving spouse who wants to defer withdrawals entirely may prefer the beneficiary-rollover route below, which can move the funds into their own RRSP (not yet a RRIF) with no mandatory minimum until they choose to convert it.

Example:

The tax is deferred, not eliminated. When the surviving spouse eventually withdraws from the RRIF, those withdrawals are taxed as ordinary income. Beyond the mandatory annual minimum, the surviving spouse controls how much more (if anything) to withdraw, and the account continues to grow tax-sheltered in the meantime.

Option 2: Spousal Rollover via Beneficiary Designation

If the spouse is named as a beneficiary rather than successor annuitant, the RRIF is paid out at death, but the proceeds can still be transferred to the spouse’s RRSP, RRIF or an eligible annuity with no immediate tax. This is more administratively complex than the successor annuitant route, but it produces the same tax-deferral outcome when done correctly.

If the RRIF is paid to the estate instead and the spouse (or a financially dependent child or grandchild) inherits from the estate, the executor and that survivor can jointly file Form T1090 to designate their share as a designated benefit, which they can then transfer the same way.

The key risk with the beneficiary route is that the transfer must be completed correctly: missing the deadline or skipping the transfer means the proceeds are taxable. The successor annuitant route sidesteps this by keeping the account open. The tradeoff: a spouse who is still young enough to hold an RRSP can roll the funds into their own RRSP, where no minimum withdrawal applies until they convert it. That can suit a younger surviving spouse who doesn’t need the income yet, since a successor-annuitant RRIF keeps paying minimums.

The Minimum Withdrawal in the Year of Death

RRIF withdrawal rules require a minimum annual withdrawal regardless of what else happens in the year. In the year of death, what happens to any part of the minimum not yet paid depends on the designation.

Executors should confirm with the financial institution how much of the year’s minimum was paid before death.

Non-Spouse Beneficiary: The Full Tax Hit

When someone other than a spouse (an adult child, sibling, or other person) is named as beneficiary, there is no rollover available unless they are a financially dependent child or grandchild. The full fair market value of the RRIF on the date of death is included as income on the deceased’s terminal T1 return. Combined with other income (pensions, investment income, CPP/OAS), this can push the terminal return into the highest marginal tax bracket.

Total federal and Ontario income tax on the final return, estimated with 2026 tax rules (basic personal amount, Ontario surtax and Health Premium included; all income treated as non-employment income, with no pension or age credits). Actual figures depend on the deceased’s other income and credits.

A critical point that surprises many families: the named beneficiary receives the full RRIF proceeds, but the estate must pay the income tax from its other assets. If the estate has insufficient liquid assets, the executor and beneficiary must work out how the tax bill is funded, which can cause family conflict. Discussing this in advance, or structuring the estate to ensure the estate covers the tax, is important when a non-spouse beneficiary is intended.

Naming a non-spouse beneficiary rather than the estate still has one advantage: the RRIF bypasses probate, saving fees and delays.

Probate: Named Beneficiaries Bypass It

Probate fees are calculated on the value of assets flowing through the estate. A RRIF with a named beneficiary (or a successor annuitant) bypasses the estate: the proceeds pass directly to the designated person and are not subject to probate fees.

Note: Ontario’s Estate Administration Tax is $0 on the first $50,000 of estate value and 1.5% on the remainder, so probate costs on a RRIF with no named beneficiary scale with the account’s value. Naming an individual as beneficiary avoids this cost, although the RRIF’s value is still taxed on the deceased’s final return. Quebec is different: financial institutions such as RBC Direct Investing do not accept a beneficiary designation on a registered account from Quebec residents, so the beneficiary or successor annuitant is named in the will instead. A notarial will does not need to be probated in Quebec. Rules can differ for plans held with an insurer, so a notary can confirm how a particular plan is handled.

What the Executor Must Do After Death

The executor has several time-sensitive responsibilities related to the RRIF. Missing steps, particularly a rollover transfer or a T1090 designation, can create unnecessary tax costs for the estate.

The terminal T1 return is due April 30 of the year following death if death occurred between January 1 and October 31; for a death between November 1 and December 31, it is due 6 months after the date of death. If the deceased or their spouse or common-law partner was operating a business, the deadline is June 15 of the following year for a death before December 16, and 6 months after the date of death for a death between December 16 and December 31. Late-year deaths get more filing time, not less.

Key Takeaways

• For a spouse or common-law partner, a successor annuitant designation involves the fewest steps: the RRIF continues under the survivor, with no tax at death and no payout or transfer to arrange
• Spousal beneficiary with a transfer also defers tax, but the RRIF is paid out and the funds must be moved to the spouse’s own plan
• Other beneficiaries trigger full income inclusion on the deceased’s terminal return, unless a financially dependent child or grandchild uses a rollover
• Any unpaid minimum for the year of death goes to a successor annuitant, or is part of the value taxed at death
• Named beneficiaries generally bypass probate; Quebec handles designations differently
• Review your RRIF designation, on the contract and in your will

Related Reading

• Successor Annuitant vs Beneficiary on a RRIF
• RRIF Withdrawal Rules and Minimum Amounts (2026)
• What Happens to Your RRSP When You Die in Canada?
• Naming an RRSP beneficiary vs the estate
• What Happens to Your TFSA When You Die in Canada?
• Retirement Income Strategies in Canada

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