What happens to my RRSP if I die? When you die, the value of the funds in your RRSP will be included in your income and will be taxed when your final tax return is filed. However, if you have a surviving spouse, the RRSP may be rolled over tax-free to the survivor, who then becomes the annuitant, or holder, of the RRSP. This provision can also apply to a common-law partner. A tax-free rollover may also be made to a dependent child or grandchild, who may use the funds to purchase an annuity with a term not exceeding 18 years, minus the age of the child.