What happens to a RRIF when the account owner dies?

What happens to a RRIF when its owner dies is one of those questions families rarely think about until they have to, and the answer depends heavily on who is named on the account. This piece explains that when a spouse or common-law partner is the beneficiary or successor owner, the money can pass over without an immediate tax hit, which keeps things simple at an already hard time. Without a qualifying beneficiary, though, the full value of the RRIF is treated as income on the deceased's final return, and the tax bill can be startling. The piece sorts out the difference between naming someone a successor owner versus a beneficiary, and which survivors can receive the funds tax-deferred. It is essential reading for anyone with a RRIF who wants their estate handled smoothly rather than leaving a surprise behind.