Death and FHSAs

Learn about the steps that you may need to take after a holder of a first home savings account (FHSA) dies.

On this page

FHSA participation before a holder's death

Any amounts withdrawn or transferred from the deceased holder's FHSAs before the death of the holder would be treated normally. For more information, go to Withdrawals and transfers out of your FHSAs.

Any contributions or transfers made to the deceased holder's FHSAs before the death of the holder would be treated normally. For more information, go to Participating in your FHSAs.

FHSA participation after a holder's death

No contributions or transfers can be made to a deceased holder's FHSAs after their date of death. Also, transfers cannot be made from the deceased holder's FHSAs to another of the deceased holder's FHSAs, registered retirement saving plans (RRSPs)  or registered retirement income funds (RRIFs) .

Distributions from the deceased holder's FHSAs can only be made to (or on behalf of) designated beneficiaries. If no beneficiaries have been designated, the amounts from the FHSA will be paid to the estate of the deceased holder.

Generally, the deceased holder is not required to include any amounts in their income in respect of the fair market value (FMV)  of all the property  held in their FHSAs at the time of their death. Under certain circumstances, however, there may be an inclusion in the income of the deceased holder's estate.

Excess FHSA amount at the time of death

If, in the year of death, the deceased holder has an excess FHSA amount , a tax of 1% per month applies to the deceased holder on the highest excess FHSA amount for each month in which the excess stays in the FHSA, up to and including the month of death. The legal representative must file a return to report the excess FHSA amount and pay the applicable taxes. For more information about the return and when it will have to be filed, go FHSA taxes payable, assessments, and reassessments.

For more information about excess FHSA amounts, go to What happens if you contribute or transfer too much to your FHSAs.

Exempt period after a holder's death

The exempt period begins when the holder dies and ends on December 31 of the first calendar year that begins after the holder's death, or when the trust ceases to exist, if earlier. For example, if a holder dies on April 1, 2023, the exempt period could continue until December 31, 2024.

Types of beneficiaries

After the death of the holder, the possible tax consequences will vary depending on the type of beneficiary and whether there is an excess FHSA amount at the time of death.

The types of beneficiaries of an FHSA who can be designated in the FHSA contract or the deceased holder's will are:

Determining the type of beneficiary is the first important step.

The type of beneficiary will depend on:

Only the holder of an FHSA can change a prior beneficiary designation for the FHSA. If the holder wants to change a prior beneficiary designation in their FHSA contract, they need to contact their FHSA issuer .

Survivors

If you are a spouse  or common-law partner  of the deceased holder immediately before their death, you are a survivor of the deceased holder. If you are a survivor, you may have been designated as the successor holder  or a beneficiary in the FHSA contract or in the deceased holder’s will.

A survivor who has been designated as the successor holder and is a qualifying individual

If you are a survivor who was designated as the successor holder of the FHSA and you are a qualifying individual at the time of the holder’s death, you will become the new holder of the FHSA immediately after the death of the holder. As the successor holder of the FHSA, you will be subject to the normal FHSA rules.

You will be considered to have opened a new FHSA unless the full balance of the FHSA is:

  • directly transferred to your RRSPs or RRIFs by the end of the exempt period
  • received by you as a taxable withdrawal by the end of the exempt period

Under proposed legislative amendments, both of the following must also apply:

  • You did not make any contributions or transfers from your RRSP to the FHSA after the deceased holder's death
  • You did not make any qualifying withdrawals from the FHSA after the deceased holder's death

These proposed rules will be in effect once they have received Royal Assent, and will be effective as of April 1, 2023.

If you choose to directly transfer the property to your RRSPs or RRIFs, fill out Form RC722 Transfer from an FHSA to an FHSA, RRSP or RRIF After the Death of the Holder and give it to your RRSP issuer or RRIF carrier.

Financial institutions do not have to use Form RC722. The institution that transfers your amounts may use other types of documents to record the transfer. The institution has to provide you with confirmation of the details of the transfer.

If you are considered to have opened a new FHSA in respect of this FHSA, you will be considered to have opened the FHSA on the date you became the successor holder.

The maximum participation period of the deceased FHSA holder will not apply to you, and:

  • If you were the holder of another FHSA prior to the time of the deceased FHSA holder's death, your maximum participation period would have started on the date you opened your first FHSA.
  • If you were not the holder of another FHSA prior to the time of the deceased FHSA holder's death, your maximum participation period will begin on the date you became the successor holder. 

You must fill out Schedule 15 - FHSA Contributions, Transfers and Activities and file your income tax and benefit return for the year that you become the new holder of the FHSA, even if you did not contribute to the FHSA or transfer property from your RRSPs to the FHSA in that year. 

Reporting

After you become the successor holder of the FHSA, the normal transfer and withdrawal rules will apply. For more information, go to Transfers into your FHSAs and Withdrawals and transfers out of your FHSAs.

If you decide to not keep the FHSA and make a taxable withdrawal for the full balance of the FHSA by the end of the exempt period, the amount you withdraw must be included as income on your income tax and benefit return for the year of the withdrawal. These amounts will be subject to withholding tax which can be claimed on your income tax and benefit return as a credit towards any tax owing for the year received.

You will receive a T4FHSA slip, First Home Savings Account Statement from the FHSA issuer showing the taxable withdrawal received in box 22 and the income tax withholding in box 30. 

If the deceased holder had an excess FHSA amount

If the deceased holder had an excess FHSA amount at the time of their death and you became the successor holder of the FHSA after the death of the holder, you may be deemed to have made a contribution to the FHSA on the first day of the month following the individual’s death. The amount of the deemed contribution, if any, will be equal to the deceased holder's excess FHSA amount at the time of the deceased holder's death minus the FMV of all of the property of the deceased holder's FHSAs at the time of their death, which you did not become the successor holder of.

  • minus Deceased holder's excess FHSA amount at the time of the deceased holder's death
  • minus FMV of all of the property of the deceased holder’s FHSAs at the time of their death, which you did not become the successor holder of
  • =eqauls Amount of deemed contribution to your FHSA on the first day of the following month after the deceased holder's death

The deemed contribution will reduce your unused FHSA participation room for the year, and may cause or increase your excess FHSA amount. For more information about excess FHSA amounts, go to What happens if you contribute or transfer too much to your FHSAs.

Under proposed legislative amendments, if you are deemed to have made an FHSA contribution as a result of the deceased holder's excess FHSA amount at the time of their death, you will be considered to have opened the FHSA on the date you became the successor holder.

  • Example – Survivor who does not have an FHSA decides to keep the deceased holder's FHSA

    When Antonio opened his FHSA on May 1, 2023, he designated his spouse, Ida, as the successor holder of his FHSA. Antonio died on October 13, 2023. Antonio did not have an excess FHSA amount on the date of his death.

    When Antonio died, Ida was a qualifying individual and decided to keep Antonio's FHSA. Ida did not have her own FHSA at the time of Antonio's death, therefore, the start of her maximum participation period would be October 13, 2023.

  • Example – Survivor who has an FHSA decides to keep the deceased holder's FHSA

    Hideki is the holder of an FHSA who died on September 18, 2024. Prior to his death, Hideki designated his spouse, Yuri, as the successor holder of his FHSA. Hideki did not have an excess FHSA amount on the date of his death.

    When Hideki died, Yuri was a qualifying individual and had opened her first FHSA on May 5, 2023. Yuri decided to keep Hideki's FHSA.

    Since Yuri was a holder of another FHSA at the time of Hideki's death, her maximum participation period was still considered to have started on May 5, 2023, which was the date that she opened her first FHSA.

  • Example – Survivor who decides to not keep the deceased holder's FHSA

    Nicole is the holder of an FHSA who died on September 1, 2023. Prior to her death, Nicole designated her common-law partner, Kenneth, as the successor holder of her FHSA. Nicole did not have an excess FHSA amount on the date of her death.

    At the time of Nicole's death, Kenneth was a qualifying individual but he did not want to keep the FHSA. He decided that he wanted to receive all the property of the FHSA as a taxable withdrawal and to close the FHSA.

    On October 5, 2023, Kenneth made a taxable withdrawal of all the property of the FHSA.

    Kenneth will have to report the amount withdrawn as income and can claim the tax withheld as a credit towards any tax owing on his 2023 income tax and benefit return.

  • Example – Survivor is a qualifying individual, deceased holder has excess FHSA amount at the time of death

    When Clint opened his FHSA on June 5, 2023, he designated his spouse, Tori, as the successor holder of his FHSA. Clint's FHSA participation room for 2023 was $8,000 because this was the first year he opened an FHSA.

    On July 15, 2023, Clint contributed $11,000 to his FHSA. He did not open any other FHSAs or make any other transactions to his FHSA.

    Clint died on November 8, 2023. Clint had an excess FHSA amount of $3,000 at the time of his death. 

    • minus $8,000 (Clint's FHSA participation room for 2023)
    • -minus $11,000 (contribution on July 15, 2023)
    • =eqauls - $3,000 (a negative amount means an excess FHSA amount)

    When Clint died, Tori was a qualifying individual.

    Since Clint had an excess FHSA amount of $3,000 at the time of his death and Tori was designated as the successor holder of his only FHSA, Tori is considered to have made a contribution to her FHSA of $3,000 on December 1, 2023:

    • minus $3,000 (Clint's excess FHSA amount at the time of death)
    • -minus $0 (FMV of Clint's FHSAs that Tori was not designated as successor holder) 
    • =eqauls $3,000 (deemed contribution to Tori's FHSA on December 1, 2023)

    Tori did not have her own FHSA at the time of Clint’s death, therefore, the start of her maximum participation period was on November 8, 2023. Tori’s unused FHSA participation room on December 1, 2023 would be $5,000.

    • minus $8,000 (Tori's FHSA participation room for 2023)
    • -minus $3,000 (deemed contribution to Tori's FHSA on December 1, 2023) 
    • =eqauls $5,000 (Tori's unused FHSA participation room on December 1, 2023)

    Clint's legal representative filed a return to report Clint's excess FHSA amount in 2023 and paid the taxes applicable to his excess FHSA amount.

A survivor who has been designated as the successor holder but is not a qualifying individual

If you are a survivor who was designated as the successor holder of the FHSA but you are not a qualifying individual at the time of the FHSA holder’s death, you cannot become the new holder of the FHSA.

You will be required to withdraw or transfer all of the property of the FHSA by the end of the exempt period by either:

  • a direct transfer on a tax-deferred basis to your RRSPs or RRIFs
  • a taxable distribution

Under proposed legislative amendments, you will also be able to make a direct transfer on a tax-deferred basis to your FHSA.  

These proposed rules will be in effect once they have received Royal Assent, and will be effective as of April 1, 2023.

If you choose to directly transfer the property to your RRSPs or RRIFs, fill out Form RC722 Transfer from an FHSA to an FHSA, RRSP or RRIF After the Death of the Holder and give it to your RRSP issuer or RRIF carrier.

Financial institutions do not have to use Form RC722. The institution that transfers your amounts may use other types of documents to record the transfer. The institution has to provide you with confirmation of the details of the transfer.

Reporting

Generally, if you make a direct transfer to your RRSPs or RRIFs, there will be no immediate tax consequences.

Any amounts you receive as a taxable distribution from the FHSA will have to be included as income on your income tax and benefit return for the year received. These amounts will be subject to income tax withholding and can be claimed on your income tax and benefit return as a credit towards any tax owing for the year received.

If you receive an amount as a taxable distribution from the FHSA, you will receive a T4FHSA slip, First Home Savings Account Statement from the deceased holder’s FHSA issuer showing the distributions you received in box 24 and the income tax withholding in box 30. For more information on reporting taxable distributions on your income tax and benefit return, go to Reporting FHSA activities on your income tax and benefit return.

If the deceased holder had an excess FHSA amount

If the deceased holder had an excess FHSA amount at the time of their death and you transfer property from the deceased holder's FHSAs to your RRSP or RRIF, the maximum amount you can transfer to avoid immediate tax consequences is the total FMV of all of the property of the deceased holder's FHSAs at the time of the transfer minus the deceased holder's excess FHSA amount at the time of the transfer.

  • minus Total FMV of all of the property of the deceased holder's FHSAs at the time of the transfer
  • minus Deceased holder's excess FHSA amount at the time of the transfer
  • =eqauls Maximum amount you can transfer to avoid immediate tax consequences

Any portion of the amount you transfer that exceeds this will be treated as both:

  • a taxable distribution to you from the deceased holder's FHSA
  • a new contribution to your RRSP at the time of the transfer 
  • Example – Survivor who is not a qualifying individual, deceased holder has no excess FHSA amount

    Brad is the holder of an FHSA who died in August 2023. Prior to his death, Brad designated his spouse, Kyle, as the successor holder of his FHSA. Brad did not have an excess FHSA amount on the date of his death.

    Kyle has been a non-resident of Canada since January 2023, therefore, he is not considered to be a qualifying individual and cannot become the holder of the FHSA. Kyle must transfer or withdraw all of the property of the FHSA by the end of the day on December 31, 2024.

    Kyle decided to fill out Form RC722, Transfer from an FHSA to an FHSA, RRSP or RRIF After the Death of the Holder and gave it to his RRSP issuer to complete a direct transfer of all the property of the FHSA to his own RRSP. The direct transfer of all of the property of the FHSA to Kyle’s RRSP was completed in December 2023. This transfer has no immediate tax consequences for Kyle.

  • Example – Survivor who is not a qualifying individual, deceased holder has excess FHSA amount

    When Erwan opened his FHSA on September 19, 2023, he designated his spouse, Solenn, as the successor holder to his FHSA. Erwan’s FHSA participation room for 2023 was $8,000, because this was the first year he opened an FHSA.

    On September 20, 2023, Erwan transferred $12,000 from his RRSP to his FHSA. He did not make any other transactions to his FHSA.

    Erwan died on October 11, 2023. Erwan had an excess FHSA amount of $4,000 at the time of his death. 

    • plus $8,000 (FHSA participation room for 2023)
    • minus $12,000 (transfer from RRSP to FHSA on September 20, 2023)
    • =eqauls
      - $4,000 (a negative amount means an excess FHSA amount)

    At the time of Erwan's death, Solenn was not a resident of Canada. Therefore, Solenn was not considered to be a qualifying individual and could not become a holder of the FHSA. Solenn must either:

    • withdraw all the property from the FHSA by the end of day on December 31, 2024 
    • transfer the property from the FHSA to her RRSP by the end of day on December 31, 2024

    Solenn decided to fill out Form RC722 Transfer from an FHSA to an FHSA, RRSP or RRIF After the Death of the Holder to transfer all the property from the FHSA to her RRSP and gave it to her RRSP issuer. The transfer of all property from the FHSA to Solenn's RRSP was completed on December 4, 2023. The FMV of the property of the FHSA at the time of the transfer was $12,150.

    The FHSA was closed on December 5, 2023.

    Since Erwan had an excess FHSA amount of $4,000 at the time of the transfer, the maximum amount transferred to Solenn's RRSP that had no immediate tax consequences was:

    • minus $12,150 (total FMV of the property of the FHSA at the time of the transfer)
    • minus $4,000 (Erwan's excess FHSA amount at the time of the transfer)
    • =eqauls
      $8,150 (maximum amount transferred without tax consequences)

    The $4,000 that had tax consequences was treated as both:

    • a taxable distribution to Solenn from Erwan's FHSA
    • a new contribution to Solenn's RRSP at the time of the transfer, which reduced her unused RRSP deduction limit for 2023

    Solenn reported the $4,000 as a taxable distribution when she filed her 2023 income tax and benefit return.

    Solenn also reported the $4,000 as an RRSP contribution on her Schedule 7 – RRSP, PRPP and SPP Contributions and Transfers and HBP and LLP Activities when she filed her 2023 income tax and benefit return.

    Erwan's legal representative filed a return to report Erwan's excess FHSA amount in 2023 and paid the taxes applicable to Erwan’s excess FHSA amount.

A survivor who has been designated as a beneficiary but not as the successor holder

If you are a survivor who has been designated as a beneficiary (not the successor holder) in the deceased holder’s FHSA contract or in the deceased holder’s will, you cannot become the new holder of the FHSA.

Reporting during the exempt period

During the exempt period, you can do the following with the portion of the property of the FHSA that you are entitled to:

  • make a direct transfer on a tax-deferred basis to your FHSAs, RRSPs or RRIFs
  • receive a taxable distribution

Generally, if you make a direct transfer to your FHSAs, RRSPs or RRIFs, there will be no immediate tax consequences. If you choose to directly transfer to your FHSAs, RRSPs, or RRIFs, fill out Form RC722 Transfer from an FHSA to an FHSA, RRSP or RRIF After the Death of the Holder and give it to your FHSA or RRSP issuer or RRIF carrier.

Financial institutions do not have to use Form RC722. The institution that transfers your amounts may use other types of documents to record the transfer. The institution has to provide you with confirmation of the details of the transfer.

Any amount you receive as a taxable distribution from the FHSA will have to be included as income on your income tax and benefit return for the year received. These amounts will be subject to income tax withholding and can be claimed on your income tax and benefit return as a credit towards any tax owing for the year received.

If you receive an amount as a taxable distribution from the FHSA, you will receive a T4FHSA slip, First Home Savings Account Statement from the deceased holder's FHSA issuer showing the distributions received in box 24 and the income tax withholding in box 30.

If there is property remaining in the FHSA at the end of the exempt period, you must include the FMV of any property in the FHSA you are entitled to as income on your income tax and benefit return for that year.

You will not be permitted to make a tax-deferred transfer after the exempt period ends.

For more information on reporting your FHSA activities to the Canada Revenu Agency (CRA), go to Reporting FHSA activities on your income tax and benefit return.

If the deceased holder had an excess FHSA amount

If the deceased holder had an excess FHSA amount at the time of their death and you transfer property from the deceased holder's FHSAs to your own FHSA, RRSP or RRIF, the maximum amount you can transfer to avoid immediate tax consequences is the total FMV of all of the property of the deceased holder’s FHSAs at the time of the transfer minus the deceased holder’s excess FHSA amount at the time of the transfer.

  • plus Total FMV of all of the property of the deceased holder's FHSAs at the time of the transfer
  • plus Deceased holder's excess FHSA amount at the time of the transfer
  • =eqauls Maximum amount you can transfer to avoid immediate tax consequences

Any portion of the amount you transfer that exceeds this will be treated as both:

  • a taxable distribution to you from the deceased holder's FHSA
  • a new contribution to your FHSA or RRSP at the time of the transfer
  • Example – Survivor who has been designated as a beneficiary but not as the successor holder, deceased holder has no excess FHSA amount

    Alicent is the holder of the FHSA who dies on September 23, 2023. Prior to her death, Alicent designates her spouse, Yñigo, as the sole beneficiary of her FHSA. However, Alicent does not designate Yñigo as a successor holder of her FHSA. Alicent does not have an excess FHSA amount at the time of her death.

    Although Yñigo is listed as the sole beneficiary of Alicent's FHSA, Yñigo cannot become the new holder of the FHSA because he is not the successor holder of Alicent’s FHSA. Yñigo must either:

    • make a direct transfer of the property that he is entitled to from Alicent’s FHSA to his own FHSA, RRSP, or RRIF by the end of day on December 31, 2024
    • receive a taxable distribution of the property that he is entitled to from Alicent’s FHSA by the end of day on December 31, 2024

    Yñigo decides to receive a taxable distribution on all of the property from Alicent's FHSA. On February 5, 2024, Yñigo receives a taxable distribution of $5,500, which is all of the property from Alicent's FHSA at the time of distribution.

    Yñigo receives a 2024 T4FHSA slip from Alicent's FHSA issuer showing the distributions he received as a beneficiary in box 24 and the income tax withholding in box 30.

    Yñigo reports $5,500 as a taxable distribution and the income tax withholding when he files his 2024 income tax and benefit return.

  • Example – Survivor who has been designated as a beneficiary but not as the successor holder, deceased holder has excess FHSA amount

    When Ismael opened his FHSA on May 3, 2023, he designated his common-law partner, Grace, as the sole beneficiary of his FHSA. Ismael did not designate Grace as the successor holder to his FHSA. Ismael's FHSA participation room for 2023 was $8,000, because this was the first year he opened an FHSA.

    On May 4, 2023, Ismael contributed $8,500 to his FHSA. He did not make any other transactions to his FHSA.

    Ismael died on May 25, 2023. Ismael had an excess FHSA amount of $500 at the time of his death. 

    • plus $8,000 (FHSA participation room for 2023)
    • plus $8,500 (FHSA contribution on May 4, 2023)
    • =eqauls
      - $500 (a negative amount means an excess FHSA amount)

    Although Grace was listed as the sole beneficiary of Ismael's FHSA, she cannot become the new holder of the FHSA because she was not the successor holder of Ismael's FHSA. Grace must either:

    • make a direct transfer of the property that she is entitled to from Ismael's FHSA to her own FHSA, RRSP, or RRIF by the end of day on December 31, 2024 
    • receive a taxable distribution of the property she is entitled to from Ismael's FHSA by the end of day on December 31, 2024

    Grace decided to fill out Form RC722 Transfer from an FHSA to an FHSA, RRSP or RRIF After the Death of the Holder to transfer the property she was entitled to from Ismael's FHSA to her own FHSA and gave it to her FHSA issuer. The FMV  of the property of Ismael's FHSA at the time of the transfer was $8,600. The transfer of $8,600 from Ismael's FHSA to Grace's FHSA was completed on September 19, 2023.

    Ismael's FHSA was closed on September 20, 2023.

    Since Ismael had an excess FHSA amount of $500 at the time of the transfer, the maximum amount transferred to Grace's FHSA that had no immediate tax consequence was:

    • plus $8,600 (total FMV of the property of Ismael’s FHSA at the time of the transfer)
    • plus $500 (Ismael's excess FHSA amount at the time of the transfer)
    • =eqauls
      $8,100 (maximum amount transferred without tax consequences)

    The $500 that had tax consequences was treated as both:

    • a taxable distribution to Grace from Ismael's FHSA
    • a new contribution to Grace's FHSA at the time of the transfer, which reduced Grace's unused FHSA participation room for 2023

    Grace reported $500 as a taxable distribution when she filed her 2023 income tax and benefit return.

    Grace also reported $500 as a new contribution to her FHSA on her Schedule 15 - FHSA Contributions, Transfers and Activities when she filed her 2023 income tax and benefit return. This $500 reduced Grace’s unused FHSA participation room for 2023.

    Ismael's legal representative filed a return to report Ismael's excess FHSA amounts in 2023 and also paid the taxes applicable to Ismael’s excess FHSA amount.

Reporting after the exempt period

The FHSA will lose its status as an FHSA at the end of the exempt period. The tax treatment of any income earned in the deceased holder’s account after the exempt period depends on the type of FHSA it was. If you do not know what type of FHSA the deceased had, ask the financial institution managing the FHSA if it was a depositary, trusteed or insured FHSA.

Depositary FHSA

Any income earned in the deceased holder’s depositary account after the exempt period and paid to the designated beneficiaries should be reported in accordance with normal taxation rules.

Trusteed FHSA

Any income earned in the deceased holder’s trust after the exempt period and paid to the designated beneficiaries will be reported by the trust. Only the part of the income earned in this period that is not taxable to the trust is reported by the beneficiary. A beneficiary will not have to pay tax on any part of the amount they received, to the extent that the funds can reasonably be regarded as having been included in the trust’s income.

Insured FHSA

Any income earned in the deceased holder’s insured product after the exempt period and paid to the designated beneficiaries is reported in the same way as described in the Reporting during the exempt period section.

A survivor is not eligible for any tax-deferred transfers after the exempt period.

Survivors when there are no designated beneficiaries

Reporting during the exempt period

Where there are no designated beneficiaries in the deceased holder’s FHSA contract or in the deceased holder’s will, the amounts from the FHSA will be distributed to the deceased holder’s estate and treated as income of the estate.

However, if you have a beneficial interest in the deceased holder’s estate, you and the legal representative of the deceased holder’s estate may choose to do the following:

  • Where amounts were transferred from the deceased holder's estate to your FHSAs, RRSPs, or RRIFs.: Option 1

    You and the legal representative can jointly designate that the transfer is deemed to be made from the FHSA (not the estate) such that the transfer will be tax-deferred with no immediate tax consequences if the normal transfer conditions are met.

  • Where amounts were paid from the estate directly to you.: Option 2

    You and the legal representative can jointly designate that the payment is deemed to be made from the FHSA (not the estate) such that the payment will be a taxable distribution to you (not the estate). This deemed payment must be included as income on your income tax and benefit return for the year received.

In order to make a joint designation, the property from the FHSA must be distributed to the estate before the end of the exempt period.

To complete the joint designation, you and the legal representative must fill out Form RC724 Joint Designation for a Deemed Transfer or Distribution from an FHSA after the Death of the Holder and send it to the deceased holder’s FHSA issuer or your FHSA or RRSP issuer or RRIF carrier, depending on whether you are jointly designating a transfer or a distribution.

You must send a copy of the form to the Canada Revenue Agency (CRA) within 60 days after the date you receive the distribution or the date the transfer to your own FHSA, RRSP, or RRIF is completed.

If your residential address is based in Ontario. Prince Edward Island, Newfoundland and Labrador, Yukon, Nunavut, Northwest Territories and the following Quebec cities: Montréal, Québec City, Laval, Sherbrooke, Gatineau, and Longueuil, send the form to:

Canada Revenue Agency
Sudbury Tax Centre
FHSA Processing Unit
Post Office Box 20000, Station A
Sudbury ON  P3A 5C1

If your residential address is based in Manitoba, Saskatchewan, Alberta, British Columbia, Nova Scotia, New Brunswick and the remaining areas of the province of Quebec not listed under the Sudbury Tax Centre, send the form to:

Canada Revenue Agency
Winnipeg Tax Centre
FHSA Processing Unit
Post Office Box 14000, Station Main
Winnipeg MB  R3C 3M2

If the deceased holder had an excess FHSA amount

If the property you and the legal representative of the estate designate as having been received by you as a direct transfer from the deceased holder's FHSAs to your own FHSA, RRSP, or RRIF includes an excess FHSA amount, the maximum amount that you can transfer and avoid tax consequences is the total FMV of all of the FHSA property held in the estate at the time of the transfer minus the excess FHSA amount at the time of the transfer.

  • plus Total FMV of all of the FHSA property held in the estate at the time of the transfer
  • plus Deceased holder's excess FHSA amount at the time of the transfer
  • =eqauls Maximum amount you can transfer and avoid immediate tax consequences

Any portion of the amount you transfer that exceeds this will be both:

  • a taxable distribution to you from the deceased holder's FHSA
  • a new contribution to your FHSA or RRSP at the time of the transfer 
  • Example – Joint designation of a transfer, deceased holder has no excess FHSA amount

    Horace is the holder of an FHSA who died on June 25, 2023. The FHSA contract designated his estate as the sole beneficiary. His wife, Audrey, was a beneficiary of the estate. Horace did not have an excess FHSA amount at the time of his death.

    All of the property of Horace's FHSA was distributed to his estate on August 5, 2023. Horace's FHSA had an FMV of $8,000 immediately before the distribution occurred.

    On September 3, 2023, Audrey and the legal representative of Horace's estate determined that Audrey was entitled to $3,000 of the FHSA from the estate. They completed Form RC724, Joint Designation for a Deemed Transfer or Distribution from an FHSA after the Death of the Holder and jointly designated to have the $3,000 treated as a deemed transfer from Horace's FHSA (not from the estate) to Audrey's RRSP. The transfer was completed on September 7, 2023.

    After the transfer was completed, Audrey and the legal representative of Horace’s estate submitted a copy of the completed Form RC724 Joint Designation for a Deemed Transfer or Distribution from an FHSA after the Death of the Holder to the CRA.

    As a result of the joint designation, the $3,000 was treated as a tax-deferred transfer from Horace's FHSA to Audrey’s RRSP. There were no immediate tax consequences for Audrey.

    As a result of the joint designation, Horace's estate was only required to report $5,000 ($8,000 minus $3,000) as its income from the FHSA for 2023.

  • Example – Joint designation of a transfer, deceased holder has an excess FHSA amount

    Pierre is an FHSA holder who dies in June 2023. Prior to his death, Pierre names his estate as the sole beneficiary of his FHSA. Pierre has an excess FHSA amount of $4,000 at the time of his death. The FMV of Pierre’s FHSA at the time of his death is $12,000. 

    The property from Pierre's FHSA is paid out to the estate on August 1, 2023. The FMV of Pierre's FHSA at the time the property is paid out to the estate increases to $13,000.

    Pierre's wife, Celine, is named as a beneficiary of the estate.

    On August 20, 2023, Celine and the legal representative of Pierre's estate determines that Celine is entitled to receive $11,000 of the FHSA from the estate. They fill out Form RC724, Joint Designation for a Deemed Transfer or Distribution from an FHSA after the Death of the Holder and jointly designate to have the $11,000 be treated as a deemed transfer from Pierre's FHSA (not the estate) to Celine's RRSP. They give the completed form to Celine's RRSP issuer and the transfer is completed on September 30, 2023. The FMV of all of the FHSA property held in the estate at the time of the transfer is $13,500.

    On October 8, 2023, Celine and the legal representative of Pierre's estate sends a copy of the completed Form RC724 Joint Designation for a Deemed Transfer or Distribution from an FHSA after the Death of the Holder to the CRA.

    Upon review of the file, the CRA agent determines that Pierre had an excess FHSA amount of $4,000 at the time of his death. As a result, the maximum amount that Celine can transfer to her RRSP without immediate tax consequences is:

    • plus $13,500 (total FMV of all of the FHSA property held in the estate at the time of transfer)
    • plus $4,000 (Pierre's excess FHSA amount at the time of the transfer)
    • =eqauls $9,500 (maximum amount that can be transferred without immediate tax consequences)

    Since $11,000 was transferred to Celine's RRSP, the remaining $1,500 ($11,000 transfer minus $9,500 maximum amount that can be transferred without immediate tax consequences) will be treated as both:

    • a taxable distribution to Celine from the Pierre's FHSA
    • a new contribution to Celine's RRSP at the time of the transfer

    Celine reports $1,500 as a taxable distribution to her from Pierre’s FHSA on her 2023 income tax and benefit return.

    Celine also reports $1,500 as a new RRSP contribution on her Schedule 7 – RRSP, PRPP and SPP Contributions and Transfers and HBP and LLP Activities when she files her 2023 income tax and benefit return.

    Pierre's estate is required to report $2,000 as its income from the FHSA in 2023.

    • plus $13,000 (FMV of the FHSA at the time the property is paid out to the estate)
    • plus $11,000 (amount Celine and Pierre's legal representative jointly designated as a deemed  transfer from Pierre's FHSA (not the estate) to Celine's RRSP)
    • =eqauls $2,000 (amount Pierre's estate is required to report as income from the FHSA in 2023)

    Pierre's legal representative is also required to file a return to report Pierre's excess FHSA amount in 2023 and to pay the taxes applicable to Pierre's excess FHSA amount.

  • Example – Joint designation of a distribution

    Sakura is the holder of an FHSA who died on November 15, 2023. The FHSA contract designated her estate as the sole beneficiary. Her husband, Bob, was a beneficiary of the estate. Sakura did not have an excess FHSA amount at the time of her death.

    All of the property in Sakura's FHSA was distributed to her estate on January 10, 2024. Sakura's FHSA had an FMV of $8,100 immediately before the distribution occurred. On February 1, 2024, $5,000 from Sakura's estate was paid out to Bob.

    Bob and the legal representative of Sakura's estate filled out Form RC724, Joint Designation for a Deemed Transfer or Distribution from an FHSA after the Death of the Holder and jointly designated to treat the $5,000 as a deemed distribution from the FHSA (not the estate). The distribution was completed on May 5, 2024.

    After the distribution was completed, Bob and the legal representative of Sakura’s estate submitted a copy of the completed Form RC724 Joint Designation for a Deemed Transfer or Distribution from an FHSA after the Death of the Holder to the CRA.

    As a result of the joint designation, Bob reported the $5,000 that he received as a taxable distribution from Sakura’s FHSA when he filed his 2024 income tax and benefit return.

    As a result of the joint designation, Sakura's estate only reported $3,100 ($8,100 minus $5,000) as its income from the FHSA for 2024.

Reporting after the exempt period

The FHSA will lose its status as an FHSA at the end of the exempt period. The tax treatment of any income earned in the deceased holder’s account after the exempt period depends on the type of FHSA it was. If you do not know what type of FHSA the deceased had, ask the financial institution managing the FHSA if it was a depositary, trusteed or insured FHSA.

Depositary FHSA

Any income earned in the deceased holder’s depositary account after the exempt period and paid to the deceased holder’s estate should be reported in accordance with normal taxation rules.

Trusteed FHSA

Any income earned in the deceased holder’s trust after the exempt period and paid to the deceased holder’s estate will be reported by the trust. Only the part of the income earned in this period that is not taxable to the trust is reported by the beneficiary. A beneficiary will not have to pay tax on any part of the amount they received to the extent that the funds can reasonably be regarded as having been included in the trust’s income.

Insured FHSA

Any income earned in the deceased holder’s insured product after the exempt period and paid to the deceased holder’s estate is reported in the same way as described in the Reporting during the exempt period section.

Beneficiaries other than survivors

The holder of an FHSA can designate any individual or qualified donee (for example, a registered charity) as a beneficiary of their FHSA.

Reporting during the exempt period

If you are a beneficiary (other than a survivor) of a deceased holder’s FHSA, any amounts you receive from the FHSA during the exempt period must be included as income on your income tax and benefit return for the year received. These amounts will be subject to income tax withholding and can be claimed on your income tax and benefit return as a credit towards any tax owing for the year received.

If there is property remaining in the FHSA at the end of the exempt period, each beneficiary of the FHSA is required to include in their income for that year the proportion of the FMV of all of the remaining property in the FHSA that the beneficiary is entitled to.

Each beneficiary (other than qualified donees) of the FHSA will receive a T4FHSA slip, First Home Savings Account Statement from the deceased holder's FHSA issuer showing the amounts they received from the FHSA during the exempt period in box 24 and the property in the FHSA that they are entitled to receive at the end of the exempt period in box 26.

Where there are no designated beneficiaries in the FHSA contract or in the deceased holder's will, the amounts from the FHSA will be deemed included in income by the deceased holder's estate.

If the beneficiary is a qualified donee

Generally, if a qualified donee is named as the beneficiary of an FHSA, any amount that it receives from the FHSA during the exempt period shall be included in calculating the qualified donee's income for the year received.

Generally, if there is property remaining in the FHSA at the end of the exempt period, the qualified donee will also be required to include in the calculation of its income for that year the proportion of the FMV of all of the remaining property in the FHSA that qualified donee is entitled to.

Reporting after the exempt period

The FHSA will lose its status as an FHSA at the end of the exempt period. The tax treatment of any income earned in the deceased holder’s account after the exempt period depends on the type of FHSA it was. If you do not know the type of FHSA the deceased had, ask the financial institution managing the FHSA if it was a depositary, trusteed or insured FHSA.

Depositary FHSA

Any income earned in the deceased holder’s depositary account after the exempt period and paid to the designated beneficiaries, or the deceased’s estate if there is no designated beneficiary, should be reported in accordance with normal taxation rules.

Trusteed FHSA

Any income earned in the deceased holder’s trust after the exempt period and paid to the designated beneficiaries, or the deceased’s estate if there is no designated beneficiary, will be reported by the trust. Only the part of the income earned in this period that is not taxable to the trust is reported by the beneficiary. A beneficiary will not have to pay tax on any part of the amount they received, to the extent that the funds can reasonably be regarded as having been included in the trust’s income.

Insured FHSA

Any income earned in the deceased holder’s insured product after the exempt period and paid to the designated beneficiaries, or the deceased’s estate if there is no designated beneficiary, is reported in the same way as described in the Reporting during the exempt period section.

Transfers

A beneficiary (other than a survivor) is not eligible for any tax-deferred transfers.

Closing the FHSAs after death

After the death of the last FHSA holder, all FHSAs should be closed by the end of the exempt period. If the account is not closed by the end of the exempt period, the account will cease to be an FHSA.

If there is property remaining in the FHSA at the end of the exempt period, each beneficiary of the FHSA must include in their income for that year the proportion of the FMV of all of the remaining property in the FHSA to which that beneficiary is entitled.

Each beneficiary of the FHSA will receive a T4FHSA slip, First Home Savings Account Statement from the deceased holder's FHSA issuer showing the property in the FHSA that they are entitled to receive in box 26.

Example – Closing an FHSA after death

Christopher dies on August 8, 2023. He has a trusteed FHSA and has designated his two children, Alexa and Hannah, as equal beneficiaries of the FHSA. Christopher has no excess FHSA amount at the time of his death.

By the end of the day on December 31, 2024, the property of the FHSA has not yet been distributed to the beneficiaries. The FMV of the FHSA on December 31, 2024 is $8,500. Even though Alexa and Hannah have not yet received any amounts from the FHSA, they each must report $4,250 (50% of the $8,500) on their 2024 income tax and benefit return. 

Alexa and Hannah both receive a 2024 T4FHSA slip from Christopher's FHSA issuer showing $4,250 in box 26. Alexa and Hannah report $4,250 as income when they file their income tax and benefit return for 2024.

Christopher’s account will lose its status as an FHSA as of the end of the day December 31, 2024. On January 1, 2025, Christopher’s account will revert to a simple inter vivos trust and will be subject to the tax rules applicable to such trusts and their beneficiaries.

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