CRA Takes 54% Of Your RRSP When You Die (Unless You Do This)

Most Canadians think the tax bill on their RRSP comes when they retire.For many families, the biggest tax bill comes when they die.A $1 million RRSP can trigger hundreds of thousands of dollars in tax on a final return — often at rates higher than what many people paid during their working years.But there is a little-known provision in the tax rules that can dramatically reduce that tax for families with dependent minor children or grandchildren.In this episode, we cover:• Why the "lower tax bracket in retirement" assumption often fails• How a $1M RRSP can create a tax bill of more than $500,000 at death• Why RRIF withdrawals can trigger OAS clawbacks and higher effective tax rates• The strategy that can reduce a large RRSP tax bill for qualifying families• How dependent children and grandchildren can qualify for special RRSP treatment• Why beneficiary designations and will planning matter more than most people realize• The critical deadlines that can make or break the strategyRetirement planning isn't just about growing your RRSP.It's about understanding what happens when the money eventually comes out — and what happens if it doesn't.Many families only discover these rules after it's too late to do anything about them.If you have a large RRSP, minor children or grandchildren, or aging parents with registered accounts, this is a conversation worth having now — not after a death in the family.Links:📋 For the full episode breakdown and additional tax resources, visit:🌐 theadvisorstable.com📞 Looking for Trusted Tax Advice?Connect with Sankalp (Sunny) Jaggi at Cedar Consulting Group📧 [email protected]🌐 cedargroup.ca🔔 Subscribe for real-world tax, retirement, and estate planning insights.👇 Comment below: Do you think most Canadians understand what happens to their RRSP when they die?LEGAL DISCLAIMER: This video is based on a real case, but names and some details have been changed to protect client confidentiality. This content is for educational purposes only and does not constitute legal, tax, accounting, or financial advice. Always consult a qualified professional regarding your specific circumstances.#TheAdvisorsTable #RRSP #RRIF #RetirementPlanning #TaxPlanning #EstatePlanning #WealthPlanning #CanadianTax00:00 – The Hidden RRSP Tax Trap00:24 – The RRSP Tax Escape Plan00:34 – The Flawed Assumption Behind RRSPs01:03 – How Average Canadians Build $1M+ RRSPs01:50 – The Retirement Tax Problem Nobody Discusses02:10 – Forced RRIF Withdrawals and OAS Clawbacks03:43 – What Happens to Your RRSP When You Die04:20 – Deemed Disposition Explained05:05 – The Tax Law Provision Most People Miss05:59 – The Child Annuity Strategy07:31 – Real-World Results and Tax Savings07:53 – Why Younger Children Save More Tax08:52 – Eligibility Rules and Important Limits09:22 – The Five-Step Setup Process11:44 – What Happens When the Child Turns 1812:25 – Special Considerations for Grandparents13:19 – RRSP Exit Planning and Final Takeaways15:01 – Important Warnings Before You Act15:29 – Final Advice for Protecting Your Family15:50 – Share This With Someone Who Needs It