Is C.P.P. inheritance taxed before I receive it or come tax time? (Ontario)

[stiner]

I received the remainder of my grandfather's CPP last spring, almost a year after he passed. I have heard that it is taxed before I receive it, but after some googling I can't find any info on it so that I can be sure when filing taxes. Any help is appreciated!

 

[hannah1819]

@stiner Canada does not have inheritance taxes in general. When a person dies, all their assets are deemed to be disposed of at DOD and the estate owes whatever taxes need to be paid on disposition such as capital gain, dividend and income taxes.

 

[resjudicata]

@hannah1819 CPP is taxable income, whether we are discussing the monthly retirement or disability benefit, or the death benefit.

 

[ylime]

@stiner You didn't receive the "remainder" of his CPP. You received a death benefit, which is the same amount for everyone. Its yours to keep.

 

[resjudicata]

@ylime The CPP death benefit is taxable, though. Depending on how it was paid it may be taxable to OP.

 

[stiner]

@ylime It wasnt the death benefit because I received that as well to pay for the funeral. I received a letter saying that I could apply for it and I went to service Canada to make sure it was legit. So not really an inheritance I guess