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On death the plan is generally treated as fully withdrawn and taxed on the final return, unless it rolls over to a spouse or dependent child.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.
We have not yet researched whether the four Sunni schools differ on this term, so we are not going to tell you either way. 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:
- Does rrsp get taxed on death ontario
- Rrsp beneficiary financially dependent child
- Rrsp no named beneficiary death ontario
This is legal information only. For advice on your own circumstances, speak to a lawyer.
Citations & sources
Every factual claim on this page traces to a source below. Details change — check the original source before relying on any figure, fee or legal position. Anything under “further reading” is related material, not a source for what is stated here.
- Death of an RRSP annuitant — Canada Revenue Agency
- What to do when someone has died — Canada Revenue Agency
- Does rrsp get taxed on death ontario — Treadstone Law
- Rrsp beneficiary financially dependent child — Treadstone Law
- Rrsp no named beneficiary death ontario — Treadstone Law
- Rdsp beneficiary dies before plan fully used ontario — Treadstone Law
- Wills & estates practice — Treadstone Law