Canada is the only G7 nation without an estate or inheritance tax, but the government still collects tax on Canadians’ estate assets, often at the top marginal rate.

For example, assets in a Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) are taxed as income on the final tax return. Also, 50% of capital gains on property and non-registered equity investments is included as taxable income, and that can amount to a significant tax bill.

However, you can minimize tax or reduce the impact of a tax liability. Here are several strategies to help lessen the tax burden on an estate.

Leaving assets to your spouse

If you leave investments or property to your spouse through your will, taxes will be deferred—neither your estate nor your spouse will have to pay taxes immediately on capital gains. Tax will only be due when your spouse sells or gifts the property, or passes away. This tax deferral on a spousal rollover also applies to RRSP or RRIF assets when the spouse is named as the beneficiary or successor annuitant.¹

Gifting to adult children or grandchildren

Suppose you have certain non-registered investments you don’t need during your lifetime. You can sell those investments and give the cash to a child or grandchild to contribute to their RRSP, Tax-Free Savings Account (TFSA) or First Home Savings Account (FHSA). Although you will owe tax on any capital gains, the rate may be lower than the rate your estate will face. Also, you are moving funds from a taxable account to your child’s or grandchild’s tax-free or tax-deferred account.

Drawing down your RRIF

If you don’t have a spouse to receive rolled-over assets, any remaining RRIF assets are taxable as income upon your passing and may be subject to a high marginal tax rate. You may want to consider withdrawing more than your required minimum RRIF payments during retirement, when your tax rate is lower than the expected rate on your final tax return.

Maximizing your TFSA

You can come out ahead tax-wise any time you contribute funds that would otherwise have been taxable to your TFSA. During retirement, such funds may be earned income or RRIF withdrawal amounts you don’t need to support your lifestyle. Also, you may wish to sell non-registered investments, pay any tax owing and move the funds to your TFSA to benefit from future tax-free growth. You can withdraw funds tax-free for retirement income, and any remaining TFSA funds are not taxable to your estate.

Donating registered plan assets

A retiree who expects to have significant assets remaining in an RRSP or RRIF on death and wishes to make a charitable gift can take advantage of an effective tax strategy. Naming a charity as the beneficiary of the RRSP or RRIF means the estate will receive a donation tax credit that offsets the tax payable on the plan’s assets.¹

¹ In Quebec, a beneficiary is designated in the will.

This article is excerpted from the Well‑Advised Winter 2026 Newsletter and published on behalf of your financial advisor for clients residing in jurisdictions where they are registered. This material is provided solely for informational and educational purposes and is not to be construed as an offer or solicitation for the sale or purchase of any securities or as providing individual investment, tax or legal advice. Consult your professional advisor(s) prior to acting on the basis of this material. Insurance products are available through advisors registered with applicable insurance regulators. In considering any particular investment, please remember that past performance is no guarantee of future performance. Although this material has been compiled from sources believed to be reliable, we cannot guarantee its accuracy or completeness. All opinions expressed and data provided herein are subject to change without notice. Neither CI Assante Wealth Management Ltd. their affiliates or their respective officers, directors, employees or advisors are responsible in any way for any damages or losses of any kind whatsoever in respect of the use of this material. CI Assante Wealth Management is a registered business name of Assante Wealth Management (Canada) Ltd. CI Assante Wealth Management Ltd is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. © 2026 CI Assante Wealth Management. All rights reserved.