CRA notes that where the designated beneficiary of an RRSP is the annuitant’s ex-spouse, the estate of the deceased rather than the ex-spouse will bear the death tax

CRA confirmed that, generally, where the designated beneficiary of an RRSP was the former spouse of the annuitant, that beneficiary would received the RRSP proceeds on a tax-free basis to the extent of the FMV on death, so that the estate of the deceased (and, thus, ultimately its beneficiaries), would instead bear the full tax liability associated with the RRSP. In particular, the amount that was deemed to have been received as income by the deceased annuitant under s. 146(8.8) equal to the RRSP FMV on death would be excluded from the former spouse’s income and, thus, would be received tax-free.

Neal Armstrong. Summaries of 2 June 2026 STEP Roundtable, Q.7 under s. 146(8.8) and s. 160.2(1).