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The real cost of going back to the office + MORE Jul 10th
If your daily commute currently involves a sweatpants-clad walk from the coffee maker to your home office, you may have seen significant benefits, including a rise in your bank account balance. A 2022 survey from CISCO found that Canadians saved an average of $11,530 per year while working remotely.... More »
Using a HELOC as an investment strategy: not as taboo as you might think + MORE Feb 27th
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I wish to leverage my HELOC to invest in dividend-paying investments. How would you advise I approach this? Is this an effective tax savings tool? Is there any financial institution or products you would advise?
—Martha
Borrowing from a home equity line of credit
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The best high-interest savings accounts in Canada for 2024 May 21st
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The best high-interest savings accounts in Canada for 2024
Here are the accounts offering the highest interest rates and lowest fees.
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The best high-interest savings accounts in Canada for 2025 Aug 20th
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Find the best and most up-to-date savings rates in Canada using the comparison tool below. Plus, use the filters to assess your estimated return based on the size of your balance.
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The best RRSP investments 2022 + MORE Jun 26th
A registered retirement savings plan (RRSP) is an investment that is registered with the Canadian federal government. RRSPs are often described as being “tax-advantaged.” That means you don’t pay income tax on the amount you are contributing to an RRSP, in the year you earn that contribution. .... More »
Peter, 29, a server working in Halton Region, was laid off for the second time in December, during COVID-19’s second wave. Currently, he’s receiving $1,800 a month (before tax) through Employment Insurance.How is a RRIF taxed in the hands of a beneficiary?
– moneysense.ca
A MoneySense reader writes:
If a Registered Retirement Income Fund (RRIF) is left to a named beneficiary, will the beneficiary have to pay income taxes on the RRIF amount?
I read in an earlier MoneySense article that all the taxes on the RRIF would be included on the deceased’s final income tax return. Does that mean the estate, and not the beneficiary, pays the income tax on the amount in the RRIF?
FPAC responds:
The consequences of taxes and beneficiary designations on registered accounts like RRIFs can be confusing. Throw in questions about probate and they become even more so. Sometimes this confusion results in estate goals not being carried out as intended.
Let’s illustrate using some examples of Josie, her husband, Manwar, and her brother Noah. Josie has $100,000 in her RRIF and has recently passed away.
Scenario 1
Josie lists her husband, Manwar, as the direct beneficiary on her RRIF contract. What happens upon Josie’s death? (For the purposes of this illustration, we did not distinguish between designating your spouse or common-law partner as a beneficiary versus a successor annuitant, although both can accomplish the same objective of a tax-free rollover of your RRIF…
If a Registered Retirement Income Fund (RRIF) is left to a named beneficiary, will the beneficiary have to pay income taxes on the RRIF amount?
I read in an earlier MoneySense article that all the taxes on the RRIF would be included on the deceased’s final income tax return. Does that mean the estate, and not the beneficiary, pays the income tax on the amount in the RRIF?
FPAC responds:
The consequences of taxes and beneficiary designations on registered accounts like RRIFs can be confusing. Throw in questions about probate and they become even more so. Sometimes this confusion results in estate goals not being carried out as intended.
Let’s illustrate using some examples of Josie, her husband, Manwar, and her brother Noah. Josie has $100,000 in her RRIF and has recently passed away.
Scenario 1
Josie lists her husband, Manwar, as the direct beneficiary on her RRIF contract. What happens upon Josie’s death? (For the purposes of this illustration, we did not distinguish between designating your spouse or common-law partner as a beneficiary versus a successor annuitant, although both can accomplish the same objective of a tax-free rollover of your RRIF…
Is life insurance taxable in Canada?
– moneysense.ca
Life insurance is essentially buying peace of mind. You’re helping your loved ones deal with the financial impact of your death and hopefully mitigating some of the accompanying stress and emotional turmoil. But what happens after your loved ones receive their inheritance? Is life insurance taxable in Canada? Is the payout you’re leaving behind subject to income tax? The last thing you want to do is leave your loved ones with more confusion—that’s why you purchased the policy in the first place. Here’s what you need to know about life insurance and the tax implications it could have.
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Is life insurance taxable in Canada?
Most of the money received from a life insurance policy is not subject to income tax. The death benefit paid from a life insurance policy is a tax-free, lump-sum amount for the beneficiary that can be used to finance a number of things. This includes paying off debts, including a mortgage, so your family can remain in the same home and community…
Peter, 29, a server working in Halton Region, was laid off for the second time in December, during COVID-19’s second wave. Currently, he’s receiving $1,800 a month (before tax) through Employment Insurance.
