Of the G7 nations, Canada is the only one without an estate tax. But the federal government still has its ways of collecting tax when someone passes. Remaining assets in a Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) are taxed as income on the final tax return, which means about half of the balance could go to tax. And 50% of realized capital gains are also taxable on the final return – that could amount to tens of thousands of dollars