Estate Planning for Your Registered Accounts
If you have RRSPs, RRIFs, or TFSAs, it’s important to understand how they fit into your estate plan. These accounts are subject to specific rules for taxation, beneficiary designations, and transfer on death — all of which can have a significant impact on the legacy you leave behind.
Unlike non-registered investments, registered accounts often allow you to name a beneficiary directly. This can help your assets pass outside of your will, avoid probate in most provinces, and reduce delays for your heirs. The right beneficiary choice can also minimize taxes — for example, by rolling over an RRSP or RRIF to a spouse or common-law partner on a tax-deferred basis, or by naming a successor holder for your TFSA to maintain its tax-free status.
If no planning is done, the value of RRSPs and RRIFs will generally be added to your final tax return in the year of death, which may push your estate into a higher tax bracket. Coordinating your beneficiary designations with your overall estate plan ensures that your wishes are clear, your tax exposure is managed, and your loved ones receive their inheritance in the most efficient way possible.
What is necessary to assist with your estate planning for registered accounts is:
Wills and Power of Attorney
Wills and Will planning guide
Registered account planning for your estate
Cross-Border Estate Planning Considerations
Please contact us if you would like to review your registered accounts as part of a personalized estate plan that reduces taxes, avoids delays, and ensures your assets are transferred according to your wishes.
