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Bankruptcy

RRSPs can be at risk of bankruptcy. Here's how to assess your situation.
 

 

Most RRSPs can be seized.

RRSP that can't be seized

Life insurers and trust companies  RRSP can't be seized.

They are usually in RRSP annuities or fixed annuities.

To be elusive, your RRSP must designate a beneficiary. If the beneficiary is not your married spouse, your parents or your children, it must be designated IRREVOCABLE.

Note: To change an irrevocable beneficiary, the latter must give his consent.

Subterfuge

If you transfer your RRSP in one that can't be seized shortly before declaring bankruptcy, you will not escape capture. Your strategy will be unmasked and a court ruling is in favor of your creditor.

    

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