RRIF

Sorry, unless there is a spouse available for the rollover, or a disabled child beneficiary, the entire RIF is taxable upon death.

RRSPs have the same problem; the total remaining lands on the deceased's final return.  This can cause serious problems if the deceased has named beneficiaries of his/her various RRSPs (other than spouse and/or disabled eligible relative) and the companies pay the beneficiaries directly.  Then the final return will show a considerable tax bill and there may not be enough money in the estate to pay it.  Getting the necessary funds from the beneficiaries isn't always easy. 

Jo

The other replies highlight some of the problems with passing away with money in RRIFs

The taxpayer, with advice from accountant, should be establishing a strategy several years before death (yes, I know it can be unexpected at times) to remove RIF funds year by year to pay taxes at lower rates than will be incurred if a large remaining amount is dumped onto the final return.

This does not apply just to RIFs. It applies to any income and capital gains that may have to be added to a final return.

Larry Hancock