Should you withdraw funds and close your RRIF so that your family does not pay tax on it when you die?
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Our response:
While we try to provide general information to help you get started, we are not able to provide advice.
Withdrawing funds from a RRIF before you die will have tax consequences, including withholding taxes and the full amount of the withdrawal must be included in your annual income. Learn more about making withdrawals from your RRIF. In addition, the withdrawn funds may then be added to your estate at the time of your death and subject to Estate Administration Tax.
If you name a beneficiary on your RRIF, Your RRIF won’t be included in the calculation of probate fees on your estate. Learn more about what happens to your RRIF when you die.
Speak to a financial representative or estate lawyer to understand your estate and tax planning options.