{"id":2351,"date":"2026-11-12T02:13:22","date_gmt":"2026-11-12T02:13:22","guid":{"rendered":"https:\/\/www.lawgicalcorp.com\/blog\/tfsa-rrsp-life-insurance-on-death-bc\/"},"modified":"2026-11-12T03:08:56","modified_gmt":"2026-11-12T03:08:56","slug":"tfsa-rrsp-life-insurance-on-death-bc","status":"publish","type":"post","link":"https:\/\/www.lawgicalcorp.com\/blog\/tfsa-rrsp-life-insurance-on-death-bc\/","title":{"rendered":"What happens to a TFSA, RRSP, RRIF or life insurance when someone dies in BC?"},"content":{"rendered":"

By Pardeep S. Grewal<\/a>, lawyer at Lawgical Law Corporation \u00b7 Reviewed November 11, 2026<\/p>\n

Pardeep S. Grewal is a lawyer at Lawgical Law Corporation, called to the BC bar in 2024, and a member of the Law Society of British Columbia<\/a>.<\/em><\/p>\n

Updated November 11, 2026: the Wills, Estates and Succession Act (s. 85) and the Canada Revenue Agency’s pages on the death of an RRSP annuitant (modified September 11, 2026), TFSA successor holders (February 20, 2026) and TFSA beneficiaries (August 12, 2026) checked that day.<\/em><\/p>\n

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With a living named beneficiary:<\/strong> TFSAs, RRSPs, RRIFs, pensions and life insurance are usually paid straight to that person. No probate, and no BC probate fee on them.<\/p>\n

Without one<\/strong> (or if the beneficiary is “estate”): the money is paid into the estate and goes under the will.<\/p>\n

Tax:<\/strong> an RRSP or RRIF is usually taxed on the deceased’s final return, unless it goes to a spouse or partner (or a financially dependent child or grandchild). A TFSA’s value at death is tax-free.<\/p>\n

Plan by plan<\/a> \u00b7 Book a consultation<\/a><\/p>\n<\/div>\n

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The lawyers who handle these estate files<\/p>\n

\"SundeepSundeep S. Grewal<\/span>Barrister and Solicitor<\/span><\/a>\"PardeepPardeep S. Grewal<\/span>Barrister and Solicitor<\/span><\/a><\/div>\n
\nAbout our lawyers<\/summary>\n
\n

Sundeep S. Grewal<\/a><\/strong> founded Lawgical Law Corporation and practises probate, estate litigation and immigration. He has represented clients in the Provincial and Supreme Courts of British Columbia, from chambers applications to contested trials.<\/p>\n

Pardeep S. Grewal<\/a><\/strong> is a probate, estates and immigration lawyer known for clear communication and practical strategy.<\/p>\n<\/div>\n<\/details>\n<\/div>\n

When someone dies in British Columbia, their TFSA, RRSP, RRIF, pension and life insurance usually don’t follow the will. If the person named a beneficiary on the plan or policy, and that beneficiary is alive, the institution pays them directly with a death certificate, without probate. If no beneficiary was named, or the beneficiary died first, the money goes to the estate and is shared under the will. The tax is the part that catches families out. An RRSP or RRIF is generally treated as cashed in at death and taxed on the deceased’s final return, even when the money itself goes to a named beneficiary, unless it passes to a spouse or common-law partner or a financially dependent child or grandchild. A TFSA’s value at death is tax-free, and life insurance proceeds are generally not taxed.<\/p>\n

Lawgical Law Corporation<\/a>, a probate and estate law firm with offices in Surrey<\/a>, Abbotsford<\/a> and Vancouver, BC, advises executors and beneficiaries on registered plans and insurance after a death; this guide is by Pardeep S. Grewal.<\/p>\n

TFSA, RRSP, RRIF and insurance on death: plan by plan<\/h2>\n
\n\n\n\n\n\n\n\n\n\n
What happens to each plan, and who bears the tax<\/caption>\n
Plan<\/th>\nSpouse or partner named<\/th>\nSomeone else named<\/th>\nNo one named, or “estate”<\/th>\n<\/tr>\n<\/thead>\n
TFSA<\/td>\nAs successor holder<\/strong>: the TFSA becomes theirs, still tax-sheltered, without using their own room<\/td>\nAs beneficiary: paid out; value at death is tax-free, later earnings taxable<\/td>\nPaid to the estate; value at death tax-free<\/td>\n<\/tr>\n
RRSP<\/td>\nCan roll into their own plan, deferring the tax<\/td>\nPaid to the beneficiary; value usually taxed on the deceased’s final return<\/td>\nPaid to the estate; taxed on the final return<\/td>\n<\/tr>\n
RRIF<\/td>\nCan continue as successor annuitant, or roll over<\/td>\nSame as RRSP<\/td>\nSame as RRSP<\/td>\n<\/tr>\n
Life insurance<\/td>\nPaid directly<\/td>\nPaid directly<\/td>\nPaid to the estate<\/td>\n<\/tr>\n
Probate needed?<\/td>\nNo<\/td>\nNo<\/td>\nUsually yes (part of the estate)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

How beneficiary designations work in BC<\/h2>\n

WESA lets a person name a beneficiary of a “benefit plan”, such as an RRSP, RRIF, TFSA or pension, either on the plan itself or in their will (WESA s. 85<\/a>). A designation in a will only counts if it “relates expressly to a benefit plan”. Life insurance designations work in a similar way under insurance law. When the beneficiary is alive, the money goes to them, outside the estate, and isn’t counted in the BC probate fee. See which assets go through probate<\/a>.<\/p>\n

If the named beneficiary died first, the designation usually fails and the money is paid to the estate, unless an alternate was named.<\/p>\n

RRSPs and RRIFs: who pays the tax<\/h2>\n

The CRA’s general rule is that the deceased “received, immediately before death, an amount equal to the FMV” (fair market value) of the RRSP, and that amount goes on the final return (CRA, Death of an RRSP annuitant<\/a>). The exceptions:<\/p>\n