A registered retirement plan that passes by beneficiary designation.
In Islamic law
A designation naming one person can defeat a faraid distribution entirely, while leaving the tax bill to be paid from the estate the other heirs share.
In Canadian law
On death the plan is generally treated as fully withdrawn and taxed on the final return, unless it rolls over to a spouse or dependent child. The named beneficiary receives the funds — but the tax lands on the estate.
No significant difference between the four Sunni schools is recorded on this point in the sources reviewed. Where a specific case turns on it, ask a qualified scholar rather than relying on a general summary.
Canadian legal detail
Treadstone Law, an Ontario firm with a wills and estates practice, covers the Canadian side of this in more depth:
- Rrsp contribution tax deduction ontario
- Naming per stirpes vs per capita beneficiaries ontario
- Employer rrsp matching taxation ontario
This entry is general information, not legal or religious advice. Inheritance turns on the exact family circumstances. Confirm Canadian law with a lawyer in your province, and any religious ruling with a qualified scholar.
Citations & sources
Every factual claim on this page traces to one of the references below. Legislation and dollar thresholds change — verify against the primary source before relying on any figure.
- Death of an RRSP annuitant — Canada Revenue Agency
- What to do when someone has died — Canada Revenue Agency
- Rrsp vs tfsa which to use first ontario — Treadstone Law
- Life insurance payout equalization ontario — Treadstone Law
- Secondary beneficiary life insurance ontario — Treadstone Law
- Non resident beneficiary clearance certificate delay ontario — Treadstone Law
- Separation effect on will beneficiary designations ontario — Treadstone Law
- Wills & estates practice — Treadstone Law