My mother in law passed away in July 2024. She had a RIF and TFSA investments with an insurance company. The insurance company completed her paper work to close off the accounts and pay out to the estate in January 2025. I have the value of the RIF andf TFSA at the time of death in July 2024, but now the funds have grown and the deposits were larger than what was told in July of 2024. I will declare the amounts at time of death on my mother in laws last's income tax for 2024 but how do i go about declaring the increase in the RIF and the TFSA ( a growth of almost $5000 in each account). Do i declare it on deceased last filing for 2024 or do i include it in my own personal filing as the beneficiary for 2024 or 2025 and specifically where in Turbotax.
I'm sorry to hear of your loss.
In the case of the TFSA, you as the beneficiary will receive any gains as taxable income and will report it on the tax return of the year that you receive the income. For the RRIF, you (the beneficiary) will be taxed on any gains after the date of death. In both cases you’ll get T-slips for your 2025 tax return, and you’ll just need to enter those slips in TurboTax.