After the death of an FHSA holder

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After the death of an FHSA holder

Learn about the reporting requirements that apply when a first home savings account (FHSA) holder dies.

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Types of beneficiaries

In provinces or territories that recognize an FHSA beneficiary designation, any individual (including an estate) or qualified donee (for example, a registered charity) can be designated as a beneficiary of an FHSA by the holder of the FHSA. The beneficiary may be designated in the FHSA contract or in the deceased holder’s will.

Distributions from the deceased holder’s FHSAs can only be made to (or on behalf of) beneficiaries of the FHSA. The issuer has to determine who the beneficiaries of the FHSA are before they distribute any amounts from the deceased holder’s FHSA. It is possible that no beneficiary is designated.

If there are no designated beneficiaries, or the designation is not valid, the deceased holder’s estate will be the beneficiary of the deceased holder’s FHSA and the distribution from the deceased holder’s FHSA will be made to the deceased holder’s estate. The legal representative of the estate (executor or liquidator) is responsible for determining how the amount will be distributed in accordance with the terms of the deceased holder’s will.

After the death of the holder, the reporting requirements for a particular beneficiary will vary depending on the type of beneficiary.

When the FHSA holder dies, a spouse or common-law partner of the deceased holder immediately before their death is a survivor. Only a survivor may be designated as the successor holder of the deceased holder’s FHSA.

The types of beneficiaries of an FHSA are:

For all T4FHSA records, you must ensure that the "Required" fields are always reported when filing the T4FHSA annual information return. "Optional" fields should be reported when there is a corresponding transaction to report or if that field needs to be reported to satisfy the reporting requirements. To know which fields are "Required" and "Optional", go to T4FHSA - First Home Savings Account.


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

A survivor who was designated as the successor holder of the FHSA and is a qualifying individual at the time of the holder’s death will become the new holder of the FHSA immediately after the death of the holder. The successor holder of the FHSA will be subject to the normal FHSA rules. The successor holder will be considered to have entered into a new qualifying arrangement unless the full balance of the FHSA is:

  • directly transferred to the survivor's RRSPs or RRIFs by the end of the exempt period

  • received by the survivor as a taxable withdrawal by the end of the exempt period

Both of the following must also apply:

  • The survivor did not make any contributions or transfers from their RRSPs to the FHSA after the deceased holder's death
  • The survivor did not make any qualifying withdrawals from the FHSA after the deceased holder's death

When the successor holder chooses to directly transfer the property to their RRSPs or RRIFs, they can fill out Form RC722, Transfer from an FHSA to an FHSA, RRSP or RRIF After the Death of the Holder , and provide it to their RRSP issuer or RRIF carrier to document the details of the transfer.

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

Reporting

After a survivor becomes the successor holder of the FHSA, the normal transfer and withdrawal rules will apply. If a successor holder exists in the year of the holder’s death, the issuer must report the successor holder indicator as “Y” for “yes” on the successor holder’s record. When the successor holder indicator is reported as “Y”, the deceased holder social insurance number (SIN) and deceased holder date of death must also be reported.

In subsequent years, the issuer should not report “Y” for the successor holder indicator or report the deceased holder’s SIN and date of death. The issuer must also file a T4FHSA record for the deceased holder for the year of their death, which includes all transactions until the time of their death as well as the fair market value (FMV) at time of death and their date of death. Do not prepare a T4FHSA slip for the deceased holder and successor holder when they had no transactions that would require the issuance of a slip. For more information on when to prepare a T4FHSA slip, go to Filling out the T4FHSA slip.

If the successor holder decides not to keep the FHSA and directly transfers the full balance of the FHSA to their RRSPs or RRIFs by the end of the exempt period, the issuer will file a T4FHSA record for the deceased holder for the year of their death, which includes all transactions until the time of their death as well as the FMV at time of death and their date of death. Do not prepare a T4FHSA slip for the deceased holder when they had no transactions that would require the issuance of a slip. The issuer will also file a T4FHSA record for the successor holder with the following information:

  • Successor holder indicator as “Y”
  • FMV immediately prior to the transfer out
  • RRSP/RRIF transfer out
  • Deceased holder social insurance number
  • Deceased holder date of death
  • FHSA account closed indicator as “Y”
  • FHSA close date

Do not prepare a T4FHSA slip for the successor holder if they did not have any transactions which would require the issuance of a slip.

If the successor holder decides not to keep the FHSA and makes a taxable withdrawal for the full balance of the FHSA by the end of the exempt period, the issuer will file a T4FHSA record for the deceased holder for the year of their death, which includes all transactions until the time of their death as well as the FMV at time of death and their date of death. Only prepare a T4FHSA slip for the deceased holder if they made transactions which would require the issuance of a slip. The issuer will also file a T4FHSA record for the successor holder with the following information:

  • Successor holder indicator as “Y”
  • Taxable withdrawal
  • Income tax deducted
  • Deceased holder social insurance number
  • Deceased holder date of death
  • FHSA account closed indicator as “Y”
  • FHSA close date

Prepare a T4FHSA slip for the successor holder and report the total amount of taxable withdrawals in box 22, and the corresponding income tax deducted in box 30.

If the successor holder becomes a non-resident after taking over the deceased holder’s FHSA, any taxable withdrawals they make as a non-resident must be reported on an NR4 Statement of Amounts Paid or Credited to Non-Residents of Canada. For non-residents, use income code – 74 Taxable FHSA withdrawals on the NR4. For more information, go to T4061 NR4 - Non-Resident Tax Withholding, Remitting, and Reporting. Do not report taxable withdrawals made by non-residents on the T4FHSA record or box 22 of the T4FHSA slip.

Expand all - examples for a survivor who has been designated as the successor holder and is a qualifying individual Collapse all - examples for a survivor who has been designated as the successor holder and is a qualifying individual
  • Example: Survivor who decides to keep the deceased holder's FHSA

    Antonio opened an FHSA on May 1, 2024, and made a contribution of $4,500 on June 5, 2024. He died on October 13, 2024. At the time of his death, the fair market value (FMV) of all the property of the FHSA was $5,000.

    His spouse, Ida was designated as the successor holder of his FHSA. Since Ida was a qualifying individual and decided to keep Antonio’s FHSA, she was deemed to have entered into a new qualifying arrangement as of October 13, 2024.

    T4FHSA record:

    • File a record for Antonio which contains all the transactions he made in his FHSA up until his date of death.
    • File a record for Ida which contains all the transactions that were made in the FHSA after Antonio's date of death.
    Survivor decides keep deceased FHSA
    Data elements 2024 record for Antonio 2024 record for Ida
    FHSA contract number xxxxxx022 xxxxxx022
    New FHSA account indicator Y N
    FHSA account closed indicator N N
    Successor holder account indicator Y
    Contribution
    Transaction Date: 2024-06-05    		 $4,500.00
    Total contributions $4,500.00
    Recipient date of death 2024-10-13
    FMV at time of death $5,000.00
    Calendar year end FMV $5,000.00 $5,000.00
    Deceased holder social insurance number xxxxxx013
    Deceased holder date of death 2024-10-13

    T4FHSA slip:

    • Prepare a T4FHSA slip for Antonio for tax year 2024 and report the total amount of contributions in box 18.
    • Do not prepare a T4FHSA slip for Ida for tax year 2024 if she did not have any transactions in her account which would require the issuance of a slip.

  • Example: Survivor who decides not to keep the deceased holder's FHSA and completes a direct transfer on a tax-deferred basis to their RRSPs or RRIFs by the end of the exempt period

    Monica opened an FHSA on June 15, 2024, and made a contribution of $7,800 on July 8, 2024. She died on September 1, 2024. She had designated her common-law partner, Ryan, as the successor holder of her FHSA. At the time of her death, the FMV of all the property of the FHSA was $8,000.

    Although Ryan was a qualifying individual, he did not want to keep the FHSA. On October 15, 2024, he directly transferred all of the property ($8,000) from his FHSA to his RRSP and he decided to close his FHSA. As a result, he was not deemed to have entered into a new qualifying arrangement as of September 1, 2024.

    T4FHSA record:

    • File a record for Monica which contains all the transactions she made in her FHSA up until her date of death.
    • File a record for Ryan which contains all the transactions that were made in the FHSA after Monica's date of death.
    Survivor decides not keep deceased FHSA
    Data elements 2024 record for Monica 2024 record for Ryan
    FHSA contract number xxxxxx024 xxxxxx024
    New FHSA account indicator Y N
    FHSA account closed indicator N Y
    FHSA close date 2024-10-15
    Successor holder account indicator Y
    Contribution
    Transaction Date: 2024-07-08    		 $7,800.00
    FMV immediately prior to the transfer out
    Transaction Date: 2024-10-15    		 $8,000.00
    RRSP/RRIF transfer out
    Transaction Date: 2024-10-15    		 $8,000.00
    Total contributions $7,800.00
    Total RRSP/RRIF transfers out $8,000.00
    Recipient date of death 2024-09-01
    FMV at time of death $8,000.00
    Calendar year end FMV $8,000.00 $0.00
    Deceased holder social insurance number xxxxxx015
    Deceased holder date of death 2024-09-01

    T4FHSA slip:

    • Prepare a T4FHSA slip for Monica for tax year 2024 and report the total amount of contributions in box 18.
    • Do not prepare a T4FHSA slip for Ryan for tax year 2024 if he did not have any transactions in his account which would require the issuance of a slip.

  • Example: Survivor who decides not to keep the deceased holder's FHSA and receives a taxable distribution by the end of the exempt period

    Nicole opened an FHSA on June 5, 2024, and transferred $4,000 from her RRSP to her FHSA on July 5, 2024. She had also designated her spouse, Kenneth, as the successor holder of her FHSA. She died on September 1, 2024. At the time of her death, the FMV of all the property of the FHSA was $4,200.

    Although Kenneth was a qualifying individual, he did not want to keep the FHSA. On October 5, 2024, Kenneth made a taxable withdrawal of all the property ($4,200) from the FHSA and decided to close his FHSA. As a result, he was not deemed to have entered into a new qualifying arrangement as of September 1, 2024.

    T4FHSA record:

    • File a record for Nicole which contains all the transactions she made in her FHSA up until her date of death.
    • File a record for Kenneth which contains all the transactions that were made in the FHSA after Nicole's date of death.
    Survivor decides not keep deceased FHSA and receive taxable distribution
    Data elements 2024 record for Nicole 2024 record for Kenneth
    FHSA contract number xxxxxx055 xxxxxx055
    New FHSA account indicator Y N
    FHSA account closed indicator N Y
    FHSA close date 2024-10-05
    Successor holder account indicator Y
    RRSP transfer in
    Transaction Date: 2024-07-05    		 $4,000.00
    Taxable withdrawal
    Transaction Date: 2024-10-05    		 $4,200.00
    Income tax deducted
    Transaction Date: 2024-10-05    		 $420.00
    ($210.00 in Quebec)
    Total RRSP transfers in $4,000.00
    Total taxable withdrawals $4,200.00
    Total income tax deducted $420.00
    ($210.00 in Quebec)
    Recipient date of death 2024-09-01
    FMV at time of death $4,200.00
    Calendar year end FMV $4,200.00 $0.00
    Deceased holder social insurance number xxxxxx018
    Deceased holder date of death 2024-09-01

    T4FHSA slip:

    • Prepare a T4FHSA slip for Nicole for tax year 2024 and report the total amount transferred from her RRSP to her FHSA in box 32.
    • Prepare a T4FHSA slip for Kenneth for tax year 2024 and report the total amount of taxable withdrawals in box 22, and report the corresponding income tax deducted amount in box 30.


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

A survivor who was designated as the successor holder of the FHSA but is not a qualifying individual at the time of the holder’s death cannot become the new holder of the FHSA. The survivor 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 to their FHSAs, RRSPs or RRIFs, without immediate tax consequences generally
  • a taxable distribution

When the survivor chooses to directly transfer the property to their FHSAs, RRSPs or RRIFs, they can fill out Form RC722, Transfer from an FHSA to an FHSA, RRSP or RRIF After the Death of the Holder, and provide it to their FHSA or RRSP issuer or RRIF carrier to document the details of the transfer.

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

Reporting

When a survivor is not a qualifying individual at the time of the holder’s death, they cannot become the new holder of the FHSA.

If the survivor directly transfers the full balance of the deceased holder’s FHSA to their own FHSAs (opened at a time the survivor was a qualifying individual) by the end of the exempt period, the issuer will file a T4FHSA record for the deceased holder and the survivor.

The deceased holder’s record will contain the following information:

  • FMV immediately prior to the transfer out
  • FHSA transfer out to survivor
  • Recipient date of death
  • FMV at time of death
  • FHSA account closed indicator as “Y”
  • FHSA close date

The survivor’s record will contain the following information:

  • Survivor FHSA transfer in
  • Deceased holder FHSA contract number
  • Deceased holder social insurance number
  • Deceased holder date of death

Do not prepare a T4FHSA slip for the deceased holder and the survivor if they did not have any transactions which would require the issuance of a slip.

If the survivor directly transfers the full balance of the deceased holder's FHSA to their RRSPs or RRIFs by the end of the exempt period, the issuer will file a T4FHSA record for the deceased holder with the following information:

  • FMV immediately prior to the transfer out
  • RRSP/RRIF transfer out to survivor
  • Recipient date of death
  • FMV at time of death
  • FHSA account closed indicator as “Y”
  • FHSA close date

Do not file a T4FHSA record for the survivor since the property was transferred to their RRSP/RRIF.

Do not prepare a T4FHSA slip for the deceased holder if they did not have any transactions which would require the issuance of a slip.

If the survivor receives a taxable distribution for the full balance of the deceased holder's FHSA by the end of the exempt period, the issuer will file a T4FHSA record for the deceased holder and the survivor.

The deceased holder’s record will contain the following information:

  • FHSA beneficiary distribution out
  • Recipient date of death
  • FMV at time of death
  • Total number of beneficiaries
  • FHSA account closed indicator as “Y”
  • FHSA close date

Do not prepare a T4FHSA slip for the deceased holder if they did not have any transactions which would require the issuance of a slip.

The survivor’s record will contain the following information:

  • Beneficiary indicator as “Y”
  • FHSA beneficiary distribution received
  • Income tax deducted
  • Deceased holder FHSA contract number
  • Deceased holder social insurance number
  • Deceased holder date of death

Prepare a T4FHSA slip for the survivor and report the total amount of FHSA beneficiary distributions received in box 24, and the corresponding income tax deducted amount in box 30.

If the survivor is a non-resident, any taxable distributions received must be reported on an NR4 Statement of Amounts Paid or Credited to Non-Residents of Canada. For non-residents, use income code – 75 FHSA beneficiary distributions received on the NR4. For more information, go to T4061 NR4 – Non-Resident Tax Withholding, Remitting, and Reporting. Do not report taxable distributions received by non-residents on the T4FHSA record or box 24 of the T4FHSA slip.

Expand all - examples for a survivor who has been designated as the successor holder but is not a qualifying individual Collapse all - examples for a survivor who has been designated as the successor holder but is not a qualifying individual
  • Example: Survivor who is not a qualifying individual and completes a direct transfer to their FHSAs by the end of the exempt period

    Sasha and her spouse, Cartier, each opened an FHSA on June 10, 2024. On June 10, 2024, Sasha made a contribution of $3,000 to her FHSA, and Cartier made a contribution of $4,600 to his FHSA. Sasha died on October 5, 2024. Prior to her death, she had designated her spouse, Cartier, as the successor holder of her FHSA. At the time of Sasha’s death, the FMV of all the property of the FHSA was $3,800.

    At the time of Sasha’s death, Cartier was not a resident of Canada. Therefore, Cartier was not considered to be a qualifying individual and could not become a holder of the FHSA. On November 5, 2024, all of the property ($3,800) of the FHSA was directly transferred to Cartier’s FHSA and Sasha’s FHSA was closed on the same day.

    The FMV of all of the property of Cartier’s FHSA was $8,400 (includes $4,600 from his contributions, and $3,800 from the transfer he received). The FMV of the property has remained at $8,400 since then.

    T4FHSA record:

    • File a record for Sasha which contains all the transactions that were made in her FHSA prior to her death as well as the transfer to Cartier’s FHSA during the exempt period.
    • File a record for Cartier which contains all the transactions that were made in his FHSA throughout the year, as well as the transfer he received from Sasha’s FHSA.
    Survivor is not qualifying individual
    Data elements 2024 record for Sasha 2024 record for Cartier
    FHSA contract number xxxxxx075 xxxxxx056
    New FHSA account indicator Y Y
    FHSA account closed indicator Y N
    FHSA close date 2024-11-05
    Contribution
    Transaction Date: 2024-06-10    		 $3,000.00 $4,600.00
    FMV immediately prior to the transfer out
    Transaction Date: 2024-11-05    		 $3,800.00
    FHSA transfer out to survivor
    Transaction Date: 2024-11-05    		 $3,800.00
    Survivor FHSA transfer in
    Transaction Date: 2024-11-05    		 $3,800.00
    Recipient date of death 2024-10-05
    FMV at time of death $3,800.00
    Calendar year end FMV $0.00 $8,400.00
    Deceased holder FHSA contract number xxxxxx075
    Deceased holder social insurance number xxxxxx018
    Deceased holder date of death 2024-10-05
    Total contributions $3,000.00 $4,600.00
    Total FHSA transfers out to survivor $3,800.00
    Total survivor FHSA transfers in $3,800.00

    T4FHSA slip:

    • Prepare a T4FHSA slip for Sasha for tax year 2024 and report the total amount of contributions in box 18.
    • Prepare a T4FHSA slip for Cartier for tax year 2024 and report the total amount of contributions in box 18.

  • Example: Survivor who is not a qualifying individual and completes a direct transfer on a tax-deferred basis to their RRSPs or RRIFs by the end of the exempt period

    Brad opened an FHSA on May 9, 2024, and made a contribution of $7,500 on June 7, 2024. He died on August 22, 2024. Prior to his death, he had designated his spouse, Kyle, as the successor holder of his FHSA. At the time of Brad’s death, the FMV of all the property of the FHSA was $7,800.

    Kyle has been a non-resident of Canada since January 5, 2024, therefore, he is not a qualifying individual and cannot become the holder of the FHSA. On December 5, 2024, all of the property ($7,800) of the FHSA was directly transferred to Kyle’s RRSP and Brad’s FHSA was closed on the same day.

    T4FHSA record:

    • File a record for Brad which contains all the transactions that were made in his FHSA prior to his death as well as the transfer to Kyle’s RRSP during the exempt period.
    • Do not file a record for Kyle because the property was transferred to his RRSP.
    Survivor not qualifying individual and completes direct transfer
    Data elements 2024 record for Brad
    FHSA contract number xxxxxx035
    New FHSA account indicator Y
    FHSA account closed indicator Y
    FHSA close date 2024-12-05
    Contribution
    Transaction Date: 2024-06-07    		 $7,500.00
    FMV immediately prior to the transfer out
    Transaction Date: 2024-12-05    		 $7,800.00
    RRSP/RRIF transfer out to survivor
    Transaction Date: 2024-12-05    		 $7,800.00
    Recipient date of death 2024-08-22
    FMV at time of death $7,800.00
    Calendar year end FMV $0.00
    Total contributions $7,500.00
    Total RRSP/RRIF transfers out to survivor $7,800.00

    T4FHSA slip:

    • Prepare a T4FHSA slip for Brad for tax year 2024 and report the total amount of contributions in box 18.

  • Example: Survivor who is not a qualifying individual and receives a taxable distribution by the end of the exempt period

    Chris opened an FHSA on May 2, 2024, and made a contribution of $7,000 on June 5, 2024. He had designated his spouse, Barbara, as the successor holder of his FHSA. Chris died on September 16, 2024. At the time of his death, the FMV of all the property of the FHSA was $7,650.

    Barbara was not a qualifying individual at the time of Chris’s death; therefore, she cannot become the successor holder of the FHSA. On December 2, 2024, a taxable distribution of $7,650 was made to Barbara. After the taxable distribution, Chris’ FHSA was closed.

    T4FHSA record:

    • File a record for Chris which contains all the transactions that were made in his FHSA prior to his death as well as the taxable distribution to Barbara during the exempt period.
    • File a record for Barbara which contains the taxable distribution that she received.
    Survivor not qualifying individual and receives taxable distribution
    Data elements 2024 record for Chris 2024 record for Barbara
    FHSA contract number xxxxxx023 000000000
    New FHSA account indicator Y N
    FHSA account closed indicator Y N
    FHSA close date 2024-12-02
    Beneficiary indicator Y
    Contribution
    Transaction Date: 2024-06-05    		 $7,000.00
    FHSA beneficiary distribution out
    Transaction Date: 2024-12-02    		 $7,650.00
    FHSA beneficiary distribution received
    Transaction Date: 2024-12-02    		 $7,650.00
    Income tax deducted
    Transaction Date: 2024-12-02    		 $1,530.00
    ($765.00 in Quebec)
    Recipient date of birth 1989-02-18 Report DOB if known.
    If unknown, enter zeros.
    Recipient date of death 2024-09-16
    FMV at time of death $7,650.00
    Calendar year end FMV $0.00 $0.00
    Deceased holder FHSA contract number xxxxxx023
    Deceased holder social insurance number xxxxxx017
    Deceased holder date of death 2024-09-16
    Total contributions $7,000.00
    Total number of beneficiaries 1
    Total FHSA beneficiary distributions out $7,650.00
    Total FHSA beneficiary distributions received $7,650.00
    Total income tax deducted $1,530.00
    ($765.00 in Quebec)

    T4FHSA slip:

    • Prepare a T4FHSA slip for Chris for tax year 2024 and report the total amount of contributions in box 18.
    • Prepare a T4FHSA slip for Barbara for tax year 2024 and report the total amount of FHSA beneficiary distributions received in box 24, and report the corresponding income tax deducted amount in box 30.


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

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 cannot become the new holder of the FHSA.

Reporting during the exempt period

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

  • make a direct transfer to their FHSAs, RRSPs or RRIFs without immediate tax consequences generally

  • receive a taxable distribution

When they choose to directly transfer to their FHSAs, RRSPs, or RRIFs, they can fill out Form RC722, Transfer from an FHSA to an FHSA, RRSP or RRIF After the Death of the Holder, and provide it to their FHSA or RRSP issuer or RRIF carrier to document the details of the transfer.

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

Generally, the survivor can make a direct transfer to their FHSAs, RRSPs or RRIFs without immediate tax consequences.

If the survivor decides to make a direct transfer to their FHSAs, the issuer must file a T4FHSA record for the survivor and the deceased holder.

The deceased holder’s record will contain the following information:

  • FMV immediately prior to the transfer out
  • FHSA transfer out to survivor
  • Recipient date of death
  • FMV at time of death
  • FHSA account closed indicator as “Y”
  • FHSA close date

The survivor’s record will contain the following information:

  • Survivor FHSA transfer in
  • Deceased holder FHSA contract number
  • Deceased holder social insurance number
  • Deceased holder date of death

Do not prepare a T4FHSA slip for the deceased holder and the survivor if they did not have any transactions which would require the issuance of a slip.

If the survivor decides to make a direct transfer to their RRSPs or RRIFs, the issuer must file a T4FHSA record for the deceased holder with the following information:

  • FMV immediately prior to the transfer out
  • RRSP/RRIF transfer out to survivor
  • Recipient date of death
  • FMV at time of death
  • FHSA account closed indicator as “Y”
  • FHSA close date

Do not file a T4FHSA record for the survivor since the property was transferred to their RRSP/RRIF.

Do not prepare a T4FHSA slip for the deceased holder if they did not have any transactions which would require the issuance of a slip.

If the survivor decides to receive a taxable distribution, the issuer will file a T4FHSA record for them and the deceased holder.

The deceased holder’s record will contain the following information:

  • FHSA beneficiary distribution out
  • Recipient date of death
  • FMV at time of death
  • Total number of beneficiaries
  • FHSA account closed indicator as “Y”
  • FHSA close date

Do not prepare a T4FHSA slip for the deceased holder if they did not have any transactions which would require the issuance of a slip.

The survivor’s record will contain the following information:

  • Beneficiary indicator as “Y”
  • FHSA beneficiary distribution received
  • Income tax deducted
  • Deceased holder FHSA contract number
  • Deceased holder social insurance number
  • Deceased holder date of death

Prepare a T4FHSA slip for the survivor and report the total amount of FHSA beneficiary distributions received in box 24, and the corresponding income tax deducted in box 30.

If the survivor is a non-resident, any taxable distributions received should be reported on the NR4 Statement of Amounts Paid or Credited to Non-Residents of Canada. For non-residents, use income code – 75 FHSA beneficiary distributions received on the NR4. For more information, go to T4061 NR4 – Non-Resident Tax Withholding, Remitting, and Reporting. Do not report taxable distributions received by non-residents on the T4FHSA record or box 24 of the T4FHSA slip.

If there is property remaining in the FHSA at the end of the exempt period, the issuer will file a record for the deceased holder and the survivor.

The deceased holder’s record will contain the following information:

  • Recipient date of death
  • FMV at time of death
  • Calendar year end FMV
  • Total number of beneficiaries
  • FHSA account closed indicator as “N”

Do not prepare a T4FHSA slip for the deceased holder if they did not have any transactions which would require the issuance of a slip.

The survivor’s record will contain the following information:

  • Beneficiary indicator as “Y”
  • Amount deemed received on FHSA cessation
  • Deceased holder FHSA contract number
  • Deceased holder social insurance number
  • Deceased holder date of death

If the survivor is a non-resident, any amounts deemed received on FHSA cessation must be reported on the NR4 Statement of Amounts Paid or Credited to Non-Residents of Canada. For non-residents, use income code – 76 Amount deemed received on FHSA cessation on the NR4. For more information, go to T4061 NR4 – Non-Resident Tax Withholding, Remitting, and Reporting. Do not report amounts deemed received on FHSA cessation by non-residents on the T4FHSA record or box 26 of the T4FHSA slip.

Expand all - examples for a survivor who has been designated as a beneficiary but not as the successor holder Collapse all - examples for a survivor who has been designated as a beneficiary but not as the successor holder
  • Example: Survivor who has been designated as a beneficiary and completes a direct transfer to their FHSA during the exempt period

    Meredith and her spouse, Vincent, each opened an FHSA on June 16, 2024. Vincent made a contribution of $2,000 to his FHSA the day he opened his FHSA, while Meredith made a contribution of $5,600 to her FHSA on August 15, 2024. Meredith died on September 19, 2024. Prior to her death, she had designated her spouse, Vincent, as the sole beneficiary of her FHSA. At the time of Meredith’s death, the FMV of all the property of the FHSA was $5,800.

    As the sole beneficiary, Vincent is entitled to all the property in Meredith’s FHSA. On November 1, 2024, Vincent decided to directly transfer all of the property from Meredith’s FHSA ($5,800) to his own FHSA, and closed Meredith’s FHSA.

    The FMV of all of the property of Vincent’s FHSA was $7,800 (includes $2,000 from his contributions, and $5,800 from the transfer he received). The FMV of the property has remained at $7,800 since then.

    T4FHSA record:

    • File a record for Meredith which contains all the transactions that were made in her FHSA prior to her death as well as the transfer to Vincent’s FHSA during the exempt period.
    • File a record for Vincent which contains all the transactions that were made in his FHSA throughout the year, as well as the transfer he received from Meredith’s FHSA.
    Survivor has been designated as beneficiary and completes a direct transfer
    Data elements 2024 record for Meredith 2024 record for Vincent
    FHSA contract number xxxxxx077 xxxxxx055
    New FHSA account indicator Y Y
    FHSA account closed indicator Y N
    FHSA close date 2024-11-01
    Contribution
    Transaction Date: 2024-06-16    		 $2,000.00
    Contribution
    Transaction Date: 2024-08-15    		 $5,600.00
    FMV immediately prior to the transfer out
    Transaction Date: 2024-11-01    		 $5,800.00
    FHSA transfer out to survivor
    Transaction Date: 2024-11-01    		 $5,800.00
    Survivor FHSA transfer in
    Transaction Date: 2024-11-01    		 $5,800.00
    Recipient date of death 2024-09-19
    FMV at time of death $5,800.00
    Calendar year end FMV $0.00 $7,800.00
    Deceased holder FHSA contract number xxxxxx077
    Deceased holder social insurance number xxxxxx019
    Deceased holder date of death 2024-09-19
    Total contributions $5,600.00 $2,000.00
    Total FHSA transfers out to survivor $5,800.00
    Total survivor FHSA transfers in $5,800.00

    T4FHSA slip:

    • Prepare a T4FHSA slip for Meredith for tax year 2024 and report the total amount of contributions in box 18.
    • Prepare a T4FHSA slip for Vincent for tax year 2024 and report the total amount of contributions in box 18.

  • Example: Survivor who has been designated as a beneficiary and completes a direct transfer on a tax-deferred basis to their RRSP or RRIF during the exempt period

    Anna opened an FHSA on June 16, 2024, and made a contribution of $4,600 on July 1, 2024. She died on September 19, 2024. Prior to her death, she had designated her spouse, Jacob, as the sole beneficiary of her FHSA. At the time of Anna’s death, the FMV of all the property of the FHSA was $4,800.

    As the sole beneficiary, Jacob is entitled to all the property in Anna’s FHSA. On December 23, 2024, Jacob decided to directly transfer all of the property ($4,800) from Anna’s FHSA to his RRSP. Anna’s FHSA was closed on the same day.

    T4FHSA record:

    • File a record for Anna which contains all the transactions that were made in her FHSA prior to her death as well as the transfer to Jacob’s RRSP during the exempt period.
    • Do not file a record for Jacob because the property was transferred to his RRSP.
    Survivor has been designated as a beneficiary and completes a direct transfer on tax-deferred
    Data elements 2024 record for Anna
    FHSA contract number xxxxxx022
    New FHSA account indicator Y
    FHSA account closed indicator Y
    FHSA close date 2024-12-23
    Contribution
    Transaction Date: 2024-07-01    		 $4,600.00
    FMV immediately prior to the transfer out
    Transaction Date: 2024-12-23    		 $4,800.00
    RRSP/RRIF transfer out to survivor
    Transaction Date: 2024-12-23    		 $4,800.00
    Recipient date of death 2024-09-19
    FMV at time of death $4,800.00
    Calendar year end FMV $0.00
    Total contributions $4,600.00
    Total RRSP/RRIF transfers out to survivor $4,800.00

    T4FHSA slip:

    • Prepare a T4FHSA slip for Anna for tax year 2024 and report the total amount of contributions in box 18.

  • Example: Survivor who has been designated as a beneficiary and receives a taxable distribution during the exempt period

    Alicent opened an FHSA on August 5, 2024, and made a contribution of $5,000 on the same day. She died on September 23, 2024. Prior to her death, she had designated her spouse, Yñigo, as the sole beneficiary of her FHSA. At the time of Alicent’s death, the FMV of all the property of the FHSA was $5,500. The FMV of the property has remained at $5,500 since then.

    As the sole beneficiary, Yñigo is entitled to all the property in Alicent’s FHSA. On February 5, 2025, Yñigo decided to receive a taxable distribution of $5,500, which is the FMV of all of the property from Alicent’s FHSA. Alicent’s FHSA was closed on the same day.

    T4FHSA record:

    • File a record for Alicent which contains all the transactions that were made in her FHSA prior to her death as well as the beneficiary distribution to Yñigo during the exempt period.
    • File a record for Yñigo which contains the taxable distribution that he received.
    Survivor has been designated as a beneficiary and receives a taxable distribution during exempt period
    Data elements
    		 2024 record for Alicent 2025 record for Alicent 2025 record for
    Yñigo
    FHSA contract number xxxxxx077 xxxxxx077 00000000
    New FHSA account indicator Y N N
    FHSA account closed indicator N Y N
    FHSA close date 2025-02-05
    Beneficiary indicator Y
    Contribution
    Transaction Date: 2024-08-05    		 $5,000.00
    FHSA beneficiary distribution out
    Transaction Date: 2025-02-05    		 $5,500.00
    FHSA beneficiary distribution received
    Transaction Date: 2025-02-05    		 $5,500.00
    Income tax deducted
    Transaction Date: 2025-02-05    		 $1,100.00
    ($550.00 in Quebec)
    Recipient date of birth 1995-02-12 1995-02-12 Report DOB if known.
    If unknown, enter zeros.
    Recipient date of death 2024-09-23 2024-09-23
    FMV at time of death $5,500.00 $5,500.00
    Calendar year end FMV $5,500.00 $0.00 $0.00
    Deceased holder FHSA contract number xxxxxx077
    Deceased holder social insurance number xxxxxx234
    Deceased holder date of death 2024-09-23
    Total contributions $5,000.00
    Total number of beneficiaries 1
    Total FHSA beneficiary distributions out $5,500.00
    Total FHSA beneficiary distributions received $5,500.00
    Total income tax deducted $1,100.00
    ($550.00 in Quebec)

    T4FHSA slip:

    • Prepare a T4FHSA slip for Alicent for tax year 2024 and report the total amount of contributions in box 18.
    • Prepare a T4FHSA slip for Yñigo for tax year 2025 and report the total amount of FHSA beneficiary distributions received in box 24, and report the corresponding income tax deducted amount in box 30.

  • Example: Survivor who has been designated as a beneficiary and there is property remaining in the FHSA at the end of the exempt period

    Lucas opened an FHSA on June 5, 2024, and made a contribution of $5,000 on the same day. He died on September 20, 2024. Prior to his death, he had designated his spouse, Crystal, as the sole beneficiary of his FHSA. At the time of Lucas’ death, the FMV of all the property of the FHSA was $5,500. As the sole beneficiary, Crystal is entitled to all the property in Lucas’ FHSA. The FMV of all of the property of Lucas’ FHSA has remained at $5,500 throughout the year of 2024.

    By the end of the day on December 31, 2025, the property of the FHSA had not yet been distributed to Crystal. Lucas’ account would lose its status as an FHSA as of the end of the day December 31, 2025. Although Crystal had not received any amounts from the FHSA, the FMV of the property remaining in the FHSA on December 31, 2025, of $6,000 (an increase in FMV by $500 from 2024) is deemed received by Crystal on FHSA cessation and required to be reported in the record for Crystal and filed by the issuer. On January 1, 2026, Lucas’ account will revert to a simple inter vivos trust and will be subject to the tax rules applicable to such trusts and their beneficiaries.

    T4FHSA record:

    • File a record for Lucas which contains all the transactions that were made in his FHSA prior to his death.
    • File a record for Crystal which contains the amount deemed received on FHSA cessation.
    Survivor has been designated as a beneficiary and property remaining in the FHSA at the end of the exempt period
    Data elements
    		 2024 record for Lucas 2025 record for Lucas 2025 record for
    Crystal
    FHSA contract number xxxxxx112 xxxxxx112 000000000
    New FHSA account indicator Y N N
    FHSA account closed indicator N N N
    Beneficiary indicator Y
    Contribution
    Transaction Date: 2024-06-05    		 $5,000.00
    Amount deemed received on FHSA cessation
    Transaction Date: 2025-12-31    		 $6,000.00
    Recipient date of birth 1994-02-08 1994-02-08 Report DOB if known. If unknown, enter zeros.
    Recipient date of death 2024-09-20 2024-09-20
    FMV at time of death $5,500.00 $5,500.00
    Calendar year end FMV $5,500.00 $6,000.00 $0.00
    Deceased holder FHSA contract number xxxxxx112
    Deceased holder social insurance number xxxxxx121
    Deceased holder date of death 2024-09-20
    Total contributions $5,000.00
    Total number of beneficiaries 1
    Total amount deemed received on FHSA cessation $6,000.00

    T4FHSA slip:

    • Prepare a T4FHSA slip for Lucas for tax year 2024 and report the total amount of contributions in box 18.
    • Prepare a T4FHSA slip for Crystal for tax year 2025 and report the total amount deemed received on FHSA cessation in box 26

Reporting after the exempt period

At the end of the exempt period, the FHSA will lose its status as an FHSA. 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. For more information on how to report these amounts, go to Guide T4015, T5 Guide – Return of Investment Income, or Guide T4013, T3 – Trust Guide, as applicable.

Depositary or insured FHSA

A depositary FHSA is an account (with a financial institution) that holds money, term deposits, or guaranteed investment certificates (GICs), while an insured FHSA is an annuity contract (with a licensed annuity provider).

Any investment income or gains that accrue under the former FHSA after the date of death will be taxable under the regular taxation rules that apply depending on the specific characteristics of the depositary or annuity contract.

Trusteed FHSA

A trusteed FHSA (with a trust company as trustee) holds qualified investments such as money, term deposits, GICs, Canada savings bonds and provincial savings bonds, mutual funds, and most securities listed on a designated stock exchange.

If the trust still exists at the end of the exempt period, the trust will become taxable from that point forward and will have to file Form T3RET, T3 Trust Income Tax and Information Return, each year that it continues to exist.


Survivors when there are no designated beneficiaries

Reporting during the exempt period

When there are no designated beneficiaries in the deceased holder’s FHSA contract or in the deceased holder’s will, or the designation is not valid, the deceased holder’s estate will be the beneficiary of the deceased holder’s FHSA and the amounts from the FHSA will be distributed to the deceased holder’s estate and treated as income of the estate.

However, a survivor who has a beneficial interest in the deceased holder’s estate may choose to do the following with the legal representative of the deceased holder’s estate:

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

    The survivor 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 have no immediate tax consequences to the survivor if the normal transfer conditions are met.

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

    The survivor 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 the survivor (not the estate). This deemed payment must be included as income on the survivor’s 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, the survivor 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 the survivor’s FHSA or RRSP issuer or RRIF carrier to document the details of the jointly designated transfer or distribution.

If the survivor jointly designates that the transfer is deemed to be made from the FHSA (not the estate) to their FHSA, the issuer must file a T4FHSA record for the deceased holder, estate and survivor.

The deceased holder’s record will contain the following information:

  • FHSA beneficiary distribution out
  • Recipient date of death
  • FMV at time of death
  • Total number of beneficiaries
  • FHSA account closed indicator as “Y”
  • FHSA close date

Do not prepare a T4FHSA slip for the deceased holder if they did not have any transactions which would require the issuance of a slip.

The estate’s record will contain the following information:

  • Beneficiary indicator as “Y”
  • FHSA beneficiary distribution received
  • Income tax deducted
  • Deceased holder FHSA contract number
  • Deceased holder social insurance number
  • Deceased holder date of death

Prepare a T4FHSA slip for the estate and report the total amount of FHSA beneficiary distributions received in box 24, and the corresponding income tax deducted in box 30.

The survivor’s record will contain the following information:

  • FHSA deemed transfer
  • Deceased holder FHSA contract number
  • Deceased holder social insurance number
  • Deceased holder date of death

Do not prepare a T4FHSA slip for the survivor if they did not have any transactions which would require the issuance of a slip.

If the survivor jointly designates that the transfer is deemed to be made from the FHSA (not the estate) to their RRSP/RRIF, the issuer must file a T4FHSA record for the deceased holder and the estate. Do not file a T4FHSA record for the survivor since the property was transferred to their RRSP/RRIF.

The deceased holder’s record will contain the following information:

  • FHSA beneficiary distribution out
  • Recipient date of death
  • FMV at time of death
  • Total number of beneficiaries
  • FHSA account closed indicator as “Y”
  • FHSA close date

Do not prepare a T4FHSA slip for the deceased holder if they did not have any transactions which would require the issuance of a slip.

The estate’s record will contain the following information:

  • Beneficiary indicator as “Y”
  • FHSA beneficiary distribution received
  • Income tax deducted
  • Deceased holder FHSA contract number
  • Deceased holder social insurance number
  • Deceased holder date of death

Prepare a T4FHSA slip for the estate and report the total amount of FHSA beneficiary distributions received in box 24, and the corresponding income tax deducted in box 30.

If the survivor jointly designates that the transfer is deemed to be made from the FHSA (not the estate) such that the payment will be a taxable distribution to the survivor (not the estate), the issuer must file a T4FHSA record for the deceased holder and the estate.

The deceased holder’s record will contain the following information:

  • FHSA beneficiary distribution out
  • Recipient date of death
  • FMV at time of death
  • Total number of beneficiaries
  • FHSA account closed indicator as “Y”
  • FHSA close date

Do not prepare a T4FHSA slip for the deceased holder if they did not have any transactions which would require the issuance of a slip.

The estate’s record will contain the following information:

  • Beneficiary indicator as “Y”
  • FHSA beneficiary distribution received
  • Income tax deducted
  • Deceased holder FHSA contract number
  • Deceased holder social insurance number
  • Deceased holder date of death

Prepare a T4FHSA slip for the estate and report the total amount of FHSA beneficiary distributions received in box 24, and the corresponding income tax deducted in box 30.

When there are no designated beneficiaries in the deceased holder’s FHSA contract or in the deceased holder’s will and there is property remaining in the FHSA at the end of the exempt period, the issuer must file a record for the deceased holder and the estate.

The deceased holder’s record will contain the following information:

  • Recipient date of death
  • FMV at time of death
  • Calendar year end FMV
  • Total number of beneficiaries
  • FHSA account closed indicator as “N”

Do not prepare a T4FHSA slip for the deceased holder if they did not have any transactions which would require the issuance of a slip.

The estate’s record will contain the following information:

  • Beneficiary indicator as “Y”
  • Amount deemed received on FHSA cessation
  • Deceased holder FHSA contract number
  • Deceased holder social insurance number
  • Deceased holder date of death

Prepare a T4FHSA slip for the estate and report the total amount deemed received on FHSA cessation in box 26.

Expand all - examples for a survivors when there are no designated beneficiaries Collapse all - examples for a survivors when there are no designated beneficiaries
  • Example: Amounts were transferred from the deceased holder's estate to the survivor’s FHSA during the exempt period

    Kevin and his wife, Savanna, each opened an FHSA on June 4, 2024. Kevin made a contribution of $8,000 to his FHSA the day he opened his FHSA, while Savanna made a contribution of $5,000 to her FHSA on June 10, 2024. Kevin died on July 23, 2024. At the time of Kevin’s death, the FMV of all the property of the FHSA was $8,000. Since there are no designated beneficiaries in Kevin’s FHSA contract or Kevin’s will, all of the property from Kevin’s FHSA was distributed to his estate on September 5, 2024 and his FHSA was closed on the same date.

    His wife, Savanna, was a beneficiary of the estate. On October 8, 2024, as a beneficiary of Kevin’s estate, Savanna was determined to be entitled to $3,000 of the amount received by Kevin's estate from his FHSA. Savanna and the legal representative of Kevin’s estate 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 Kevin’s FHSA (not from the estate) to Savanna’s existing FHSA. As a result of the joint designation, the transfer was completed on October 15, 2024, and the $3,000 was treated as transfer from Kevin’s FHSA to Savanna’s FHSA with no immediate tax consequences.

    The FMV of all of the property of Savanna’s FHSA was $8,000 (includes $5,000 from her contributions, and $3,000 from the deemed transfer she received). The FMV of the property has remained at $8,000 since then.

    T4FHSA record:

    • File a record for Kevin which contains all the transactions that were made in his FHSA prior to his death as well as the beneficiary distribution to the estate during the exempt period.
    • File a record for the estate which contains the taxable distribution that was received.
    • File a record for Savanna which contains all the transactions that were made in her FHSA.
    Amounts transferred from deceased holder's estate to the survivor’s
    Data elements
    		 2024 record for Kevin 2024 record for Estate 2024 record for Savanna
    FHSA contract number xxxxxx128 00000000 xxxxxx643
    New FHSA account indicator Y N Y
    FHSA account closed indicator Y N N
    FHSA close date 2024-09-05
    Beneficiary indicator Y
    Contribution
    Transaction Date: 2024-06-04    		 $8,000.00
    Contribution
    Transaction Date: 2024-06-10    		 $5,000.00
    FHSA beneficiary distribution out
    Transaction Date: 2024-09-05    		 $8,000.00
    FHSA beneficiary distribution received
    Transaction Date: 2024-09-05    		 $8,000.00
    Income tax deducted
    Transaction Date: 2024-09-05    		 $1,600.00
    ($800.00 in Quebec)
    FHSA deemed transfer
    Transaction Date: 2024-10-15    		 $3,000.00
    Recipient date of birth 1982-02-08 0000-00-00 1982-04-18
    Recipient date of death 2024-07-23
    FMV at time of death $8,000.00
    Calendar year end FMV $0.00 $0.00 $8,000.00
    Deceased holder FHSA contract number xxxxxx128 xxxxxx128
    Deceased holder social insurance number xxxxxx075 xxxxxx075
    Deceased holder date of death 2024-07-23 2024-07-23
    Total contributions $8,000.00 $5,000.00
    Total number of beneficiaries 1
    Total FHSA beneficiary distributions out $8,000.00
    Total FHSA beneficiary distributions received $8,000.00
    Total income tax deducted $1,600.00
    ($800.00 in Quebec)
    Total FHSA deemed transfers $3,000.00

    T4FHSA slip:

    • Prepare a T4FHSA slip for Kevin for tax year 2024 and report the total amount of contributions in box 18.
    • Prepare a T4FHSA slip for the estate for tax year 2024 and report the total amount of FHSA beneficiary distributions received in box 24, and report the corresponding income tax deducted amount in box 30.
    • Prepare a T4FHSA slip for Savanna for tax year 2024 and report the total amount of contributions in box 18.

  • Example: Amounts were transferred from the deceased holder's estate to the survivor’s RRSPs or RRIFs during the exempt period

    Horace opened an FHSA on May 4, 2024, and he made a contribution of $8,000 to his FHSA on the same day. He died on June 25, 2024. At the time of Horace’s death, the FMV of all the property of the FHSA was $8,000. Since there are no designated beneficiaries in Horace’s FHSA contract or Horace’s will, all of the property from Horace’s FHSA was distributed to his estate on August 5, 2024 and his FHSA was closed on the same date.

    Horace’s wife, Audrey, was a beneficiary of the estate. On September 3, 2024, as a beneficiary of Horace’s estate, Audrey was determined to be entitled to $3,000 of the amount received by Horace’s estate from his FHSA. Audrey and the legal representative of Horace’s estate 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. As a result of the joint designation, the transfer was completed on September 7, 2024, and the $3,000 was treated as a tax-deferred transfer from Horace’s FHSA to Audrey’s RRSP.

    T4FHSA record:

    • File a record for Horace which contains all the transactions that were made in his FHSA prior to his death as well as the beneficiary distribution to the estate during the exempt period.
    • File a record for the estate which contains the taxable distribution that was received.
    • Do not file a record for Audrey since the property was transferred to her RRSP.
    Amounts transferred from the deceased holder's estate during the exempt period
    Data elements 2024 record for Horace 2024 record for Estate
    FHSA contract number xxxxxx138 00000000
    New FHSA account indicator Y N
    FHSA account closed indicator Y N
    FHSA close date 2024-08-05
    Beneficiary indicator Y
    Contribution
    Transaction Date: 2024-05-04    		 $8,000.00
    FHSA beneficiary distribution out
    Transaction Date: 2024-08-05    		 $8,000.00
    FHSA beneficiary distribution received
    Transaction Date: 2024-08-05    		 $8,000.00
    Income tax deducted
    Transaction Date: 2024-08-05    		 $1,600.00
    ($800.00 in Quebec)
    Recipient date of birth 1975-05-08 0000-00-00
    Recipient date of death 2024-06-25
    FMV at time of death $8,000.00
    Calendar year end FMV $0.00 $0.00
    Deceased holder FHSA contract number xxxxxx138
    Deceased holder social insurance number xxxxxx075
    Deceased holder date of death 2024-06-25
    Total contributions $8,000.00
    Total number of beneficiaries 1
    Total FHSA beneficiary distributions out $8,000.00
    Total FHSA beneficiary distributions received $8,000.00
    Total income tax deducted $1,600.00
    ($800.00 in Quebec)

    T4FHSA slip:

    • Prepare a T4FHSA slip for Horace for tax year 2024 and report the total amount of contributions in box 18.
    • Prepare a T4FHSA slip for the estate for tax year 2024 and report the total amount of FHSA beneficiary distributions received in box 24, and report the corresponding income tax deducted amount in box 30.

  • Example: Amounts were paid from the deceased holder's estate directly to the survivor as a taxable distribution during the exempt period

    Sakura opened an FHSA on June 4, 2024, and made a contribution of $8,000 to her FHSA on the same day. She died on November 15, 2024. At the time of Sakura’s death, the FMV of all of the property of the FHSA was $8,100 and had remained at this amount at the end of 2024. Since there are no designated beneficiaries in Sakura’s FHSA contract or Sakura’s will, all of the property from Sakura’s FHSA was distributed to her estate on January 10, 2025 and her FHSA was closed on the same date.

    Her husband, Bob, was a beneficiary of the estate. On February 1, 2025, of the amount received from Sakura's FHSA, the estate paid out $5,000 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 $5,000 as a deemed distribution from the FHSA (not from the estate).

    T4FHSA record:

    • File a record for Sakura which contains all the transactions that were made in her FHSA prior to her death and during the exempt period.
    • File a record for the estate which contains the taxable distribution that was received.
    • Do not file a record for Bob as the completion of Form RC724 will be sufficient to record the deemed distribution from the FHSA (not from the estate).
    Amounts paid from the deceased holder's estate directly to the survivor
    Data elements
    		 2024 record for Sakura 2025 record for Sakura 2025 record for the Estate
    FHSA contract number xxxxxx119 xxxxxx119 000000000
    New FHSA account indicator Y N N
    FHSA account closed indicator N Y N
    FHSA close date 2025-01-10
    Beneficiary indicator Y
    Contribution
    Transaction Date: 2024-06-04    		 $8,000.00
    FHSA beneficiary distribution out
    Transaction Date: 2025-01-10    		 $8,100.00
    FHSA beneficiary distribution received
    Transaction Date: 2025-01-10    		 $8,100.00
    Income tax deducted
    Transaction Date: 2025-01-10    		 $1,620.00
    ($810.00 in Quebec)
    Recipient date of birth 1960-02-08 1960-02-08 0000-00-00
    Recipient date of death 2024-11-15 2024-11-15
    FMV at time of death $8,100.00 $8,100.00
    Calendar year end FMV $8,100.00 $0.00 $0.00
    Deceased holder FHSA contract number xxxxxx119
    Deceased holder social insurance number xxxxxx178
    Deceased holder date of death 2024-11-15
    Total contributions $8,000.00
    Total number of beneficiaries 1
    Total FHSA beneficiary distributions out $8,100.00
    Total FHSA beneficiary distributions received $8,100.00
    Total income tax deducted $1,620.00
    ($810.00 in Quebec)

    T4FHSA slip:

    • Prepare a T4FHSA slip for Sakura for tax year 2024 and report the total amount of contributions in box 18.
    • Prepare a T4FHSA slip for the estate for tax year 2025 and report the total amount of FHSA beneficiary distributions received in box 24, and report the corresponding income tax deducted amount in box 30.

  • Example: No designated beneficiaries and there is property remaining in the FHSA at the end of the exempt period

    Fernando opened an FHSA on June 15, 2024, and made a contribution of $6,000 on the same day. He died on September 25, 2024. There were no designated beneficiaries in his FHSA contract or will. At the time of his death, the FMV of all the property of the FHSA was $6,200 and had remained at this amount at the end of 2024.

    By the end of the day on December 31, 2025, the property of the FHSA had not yet been distributed to the estate. Fernando’s account would lose its status as an FHSA as of the end of the day December 31, 2025. Although no distribution had been made from the FHSA, the FMV of the property remaining in the FHSA on December 31, 2025 of $6,500 (an increase in FMV by $300 from 2024) is deemed received by the estate on FHSA cessation and required to be reported in the record for the estate and filed by the issuer.

    T4FHSA record:

    • File a record for Fernando which contains all the transactions that were made in his FHSA prior to his death.
    • File a record for the estate which contains the amount deemed received on FHSA cessation.
    No designated beneficiaries
    Data elements
    		 2024 record for Fernando 2025 record for Fernando 2025 record for the Estate
    FHSA contract number xxxxxx116 xxxxxx116 000000000
    New FHSA account indicator Y N N
    FHSA account closed indicator N N N
    Beneficiary indicator Y
    Contribution
    Transaction Date: 2024-06-15    		 $6,000.00
    Amount deemed received on FHSA cessation
    Transaction Date: 2025-12-31    		 $6,500.00
    Recipient date of birth 1992-02-04 1992-02-04 0000-00-00
    Recipient date of death 2024-09-25 2024-09-25
    FMV at time of death $6,200.00 $6,200.00
    Calendar year end FMV $6,200.00 $6,500.00 $0.00
    Deceased holder FHSA contract number xxxxxx116
    Deceased holder social insurance number xxxxxx111
    Deceased holder date of death 2024-09-25
    Total contributions $6,000.00
    Total number of beneficiaries 1
    Total amount deemed received on FHSA cessation $6,500.00

    T4FHSA slip:

    • Prepare a T4FHSA slip for Fernando for tax year 2024 and report the total amount of contributions in box 18.
    • Prepare a T4FHSA slip for the estate for tax year 2025 and report the total amount deemed received on FHSA cessation in box 26.

Reporting after the exempt period

At the end of the exempt period, the FHSA will lose its status as an FHSA. 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. For more information on how to report these amounts, go to Guide T4015, T5 Guide – Return of Investment Income, or Guide T4013, T3 – Trust Guide, as applicable.

Depositary or insured FHSA

A depositary FHSA is an account (with a financial institution) that holds money, term deposits, or guaranteed investment certificates (GICs), while an insured FHSA is an annuity contract (with a licensed annuity provider).

Any investment income or gains that accrue under the former FHSA after the date of death will be taxable under the regular taxation rules that apply depending on the specific characteristics of the depositary or annuity contract.

Trusteed FHSA

A trusteed FHSA (with a trust company as trustee) holds qualified investments such as money, term deposits, GICs, Canada savings bonds and provincial savings bonds, mutual funds, and most securities listed on a designated stock exchange.

If the trust still exists at the end of the exempt period, the trust will become taxable from that point forward and will have to file Form T3RET, T3 Trust Income Tax and Information Return, each year that it continues to exist.

Beneficiaries other than survivors

The holder of an FHSA can designate any individual (including an estate) or qualified donee (for example, a registered charity) as a beneficiary of their FHSA. Where there are no designated beneficiaries in the FHSA contract or the deceased holder’s will, the deceased holder’s estate will be the beneficiary of the deceased holder’s FHSA.

Reporting during the exempt period

Where the holder of an FHSA designates an individual (including an estate) as a beneficiary of their FHSA, the issuer must file a T4FHSA record.

If a taxable distribution is made from the FHSA to the beneficiary by the end of the exempt period, the issuer must file a T4FHSA record for the deceased holder and the beneficiary. The FHSA should be closed once all property has been distributed from the FHSA.

The deceased holder’s record will contain the following information:

  • FHSA beneficiary distribution out
  • Recipient date of death
  • FMV at time of death
  • Total number of beneficiaries
  • FHSA account closed indicator as “Y”
  • FHSA close date

Do not prepare a T4FHSA slip for the deceased holder if they did not have any transactions which would require the issuance of a slip.

The beneficiary’s record will contain the following information:

  • Beneficiary indicator as “Y”
  • FHSA beneficiary distribution received
  • Income tax deducted
  • Deceased holder FHSA contract number
  • Deceased holder social insurance number
  • Deceased holder date of death

Prepare a T4FHSA slip for the beneficiary and report the total amount of FHSA beneficiary distributions received in box 24, and the corresponding income tax deducted in box 30.

If the beneficiary is a non-resident, any taxable distributions received must be reported on the NR4. For non-residents, use income code – 75 FHSA beneficiary distributions received on the NR4. For more information, go to T4061 NR4 – Non-Resident Tax Withholding, Remitting, and Reporting. Do not report taxable distributions received by non-residents on the T4FHSA record or box 24 of the T4FHSA slip.

If there is property remaining in the FHSA at the end of the exempt period, the issuer must file a record for the deceased holder and the beneficiary.

The deceased holder’s record will contain the following information:

  • Recipient date of death
  • FMV at time of death
  • Calendar year end FMV
  • Total number of beneficiaries
  • FHSA account closed indicator as “N”

Do not prepare a T4FHSA slip for the deceased holder if they did not have any transactions which would require the issuance of a slip.

The beneficiary’s record will contain the following information:

  • Beneficiary indicator as “Y”
  • Amount deemed received on FHSA cessation
  • Deceased holder FHSA contract number
  • Deceased holder social insurance number
  • Deceased holder date of death

Prepare a T4FHSA slip for the beneficiary and report the total amount deemed received on FHSA cessation in box 26.

If the beneficiary is a non-resident, any amounts deemed received on FHSA cessation must be reported on the NR4. For non-residents, use income code – 76 Amount deemed received on FHSA cessation on the NR4. For more information, go to T4061 NR4 – Non-Resident Tax Withholding, Remitting, and Reporting. Do not report amounts deemed received on FHSA cessation by non-residents on the T4FHSA record or box 26 of the T4FHSA slip.

If the beneficiary is a qualified donee

Where the holder of an FHSA designates a qualified donee as their beneficiary, the issuer must file a T4FHSA record for the deceased holder and a T4A Statement of Pension, Retirement, Annuity, and Other Income for the qualified donee.

If a distribution is made from the FHSA by the end of the exempt period and the amount is required to be included in calculating the qualified donee’s income for the year of distribution, the issuer must file a T4FHSA record for the deceased holder and a T4A slip for the qualified donee. The FHSA should be closed once all property has been distributed from the FHSA.

The deceased holder’s T4FHSA record will contain the following information:

  • FHSA beneficiary distribution out
  • Recipient date of death
  • FMV at time of death
  • Total number of beneficiaries
  • FHSA account closed indicator as “Y”
  • FHSA close date

Do not prepare a T4FHSA slip for the deceased holder if they did not have any transactions which would require the issuance of a slip.

Prepare a T4A slip for the qualified donee and report the total amount of FHSA beneficiary distributions received under the “Other information” area and identify the box with code 134 and report the corresponding amount. Report the corresponding income tax deducted in box 022.

Code 134 of the T4A will be renamed in 2025 to “Tax-free savings account (TFSA) taxable amount or taxable FHSA amount for a qualified donee”. The issuer must use this code to report the FHSA beneficiary distribution received by the qualified donee and the corresponding income tax deducted in box 022 of the T4A.

If there is property remaining in the FHSA at the end of the exempt period, the issuer must file a record for the deceased holder and the beneficiary.

The deceased holder’s T4FHSA record will contain the following information:

  • Recipient date of death
  • FMV at time of death
  • Calendar year end FMV
  • Total number of beneficiaries
  • FHSA account closed indicator as “N”

Do not prepare a T4FHSA slip for the deceased holder if they did not have any transactions which would require the issuance of a slip.

Prepare a T4A slip for the qualified donee and report the total amount deemed received on FHSA cessation under the “Other information” area and identify the box with code 134 and report the corresponding amount.

Code 134 of the T4A will be renamed in 2025 to “Tax-free savings account (TFSA) taxable amount or taxable FHSA amount for a qualified donee”. The issuer must use this code to report the amount deemed received on FHSA cessation by the qualified donee.

Expand All - examples for beneficiaries other than survivors Collapse All - examples for beneficiaries other than survivors
  • Example: Beneficiary distribution during the exempt period

    Sandra opened an FHSA on May 7, 2024, and made a contribution of $8,000 on May 12, 2024. She died on October 13, 2024. At the time of her death, the FMV of all of the property in her account was $8,000. She had designated her daughter, Kayla, as the sole beneficiary of her FHSA. On December 15, 2024, all the property in Sandra’s FHSA ($8,000) was distributed to Kayla as a taxable distribution and her FHSA was closed on the same date.

    T4FHSA record:

    • File a record for Sandra which contains all the transactions that were made in her FHSA prior to her death as well as the beneficiary distribution to Kayla during the exempt period.
    • File a record for Kayla which contains the taxable distribution that she received.
    Beneficiary distribution during the exempt period
    Data elements 2024 record for Sandra 2024 record for Kayla
    FHSA contract number xxxxxx128 00000000
    New FHSA account indicator Y N
    FHSA account closed indicator Y N
    FHSA close date 2024-12-15
    Beneficiary indicator Y
    Contribution
    Transaction Date: 2024-05-12    		 $8,000.00
    FHSA beneficiary distribution out
    Transaction Date: 2024-12-15    		 $8,000.00
    FHSA beneficiary distribution received
    Transaction Date: 2024-12-15    		 $8,000.00
    Income tax deducted
    Transaction Date: 2024-12-15    		 $1,600.00
    ($800.00 in Quebec)
    Recipient date of birth 1992-02-08 Report DOB if known.
    If unknown, enter zeros.
    Recipient date of death 2024-10-13
    FMV at time of death $8,000.00
    Calendar year end FMV $0.00 $0.00
    Deceased holder FHSA contract number xxxxxx128
    Deceased holder social insurance number xxxxxx077
    Deceased holder date of death 2024-10-13
    Total contributions $8,000.00
    Total number of beneficiaries 1
    Total FHSA beneficiary distributions out $8,000.00
    Total FHSA beneficiary distributions received $8,000.00
    Total income tax deducted $1,600.00
    ($800.00 in Quebec)

    T4FHSA slip:

    • Prepare a T4FHSA slip for Sandra for tax year 2024 and report the total amount of contributions in box 18.
    • Prepare a T4FHSA slip for Kayla for tax year 2024 and report the total amount of FHSA beneficiary distributions received in box 24, and report the corresponding income tax deducted amount in box 30.

  • Example: Beneficiary named in the contract and there is property remaining in the FHSA at the end of the exempt period

    Brandon opened an FHSA on June 2, 2024, and made a contribution of $4,000 on the same day. He died on August 5, 2024. He had designated his daughter Alexa as a beneficiary of his FHSA. At the time of his death, the FMV of all the property of the FHSA was $4,600 and had remained at this amount at the end of 2024.

    By the end of the day on December 31, 2025, the property of the FHSA had not yet been distributed to Alexa. Brandon’s account would lose its status as an FHSA as of the end of the day December 31, 2025. Although no distribution had been made from the FHSA, the FMV of the property remaining in the FHSA on December 31, 2025, of $5,000 (an increase in FMV by $400 from 2024) is deemed received by Alexa on FHSA cessation and required to be reported in the record for Alexa and filed by the issuer. On January 1, 2026, his account will revert to a simple inter vivos trust and will be subject to the tax rules applicable to such trusts and their beneficiaries.

    T4FHSA record:

    • File a record for Brandon which contains all the transactions that were made in his FHSA prior to his death and at the end of the exempt period.
    • File a record for Alexa which contains the amount deemed received on FHSA cessation.
    Beneficiary named in the contract and there is property remaining in the FHSA
    Data elements
    		 2024 record for Brandon 2025 record for Brandon 2025 record for Alexa
    FHSA contract number xxxxxx132 xxxxxx132 000000000
    New FHSA account indicator Y N N
    FHSA account closed indicator N N N
    Beneficiary indicator Y
    Contribution
    Transaction Date: 2024-06-02    		 $4,000.00
    Amount deemed received on FHSA cessation
    Transaction Date: 2025-12-31    		 $5,000.00
    Recipient date of birth 1980-05-02 1980-05-02 0000-00-00
    Recipient date of death 2024-08-05 2024-08-05
    FMV at time of death $4,600.00 $4,600.00
    Calendar year end FMV $4,600.00 $5,000.00 $0.00
    Deceased holder FHSA contract number xxxxxx132
    Deceased holder social insurance number xxxxxx152
    Deceased holder date of death 2024-08-05
    Total contributions $4,000.00
    Total number of beneficiaries 1
    Total amount deemed received on FHSA cessation $5,000.00

    T4FHSA slip:

    • Prepare a T4FHSA slip for Brandon for tax year 2024 and report the total amount of contributions in box 18.
    • Prepare a T4FHSA slip for Alexa for tax year 2025 and report the total amount deemed received on FHSA cessation in box 26.

Reporting after the exempt period

At the end of the exempt period, the FHSA will lose its status as an FHSA. 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. For more information on how to report these amounts, go to Guide T4015, T5 Guide – Return of Investment Income, or Guide T4013, T3 – Trust Guide, as applicable.

Depositary or insured FHSA

A depositary FHSA is an account (with a financial institution) that holds money, term deposits, or guaranteed investment certificates (GICs), while an insured FHSA is an annuity contract (with a licensed annuity provider).

Any investment income or gains that accrue under the former FHSA after the date of death will be taxable under the regular taxation rules that apply depending on the specific characteristics of the depositary or annuity contract.

Trusteed FHSA

A trusteed FHSA (with a trust company as trustee) holds qualified investments such as money, term deposits, GICs, Canada savings bonds and provincial savings bonds, mutual funds, and most securities listed on a designated stock exchange.

If the trust still exists at the end of the exempt period, the trust will become taxable from that point forward and will have to file Form T3RET, T3 Trust Income Tax and Information Return, each year that it continues to exist.


Spouse



Common-law partner



Successor holder



Qualifying individual


A qualifying individual is someone who:

  • is a resident of Canada
  • is at least 18 years of age
  • is a first-time home buyer


Exempt period



Property



Qualified donee



Direct transfer



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Date modified:
2024-10-31