What are the tax implications if a non-spouse adult is the beneficiary of an RRSP?
A non-spouse beneficiary of a Registered Retirement Savings Plan (RRSP) will be subject to tax. The entire value of the RRSP must be included in the final tax filing of the deceased person and reported as income. Who pays this tax – the beneficiary or the estate – depends on different factors. Generally, the beneficiary will receive their share of the RRSP after taxes.
Speak to a tax expert to ensure you understand the implications in addition to speaking with a financial representative.