By Allan Norman, MSc, CFP, CIM on October 28, 2026 Estimated reading time: 5 minutes

How can I leave more money to my children?

By Allan Norman, MSc, CFP, CIM on October 28, 2026 Estimated reading time: 5 minutes

The oft-cited RRIF meltdown tactic is a distraction. Concentrate instead on leaving a bigger legacy—or giving it away right now.

I would like to do a RRIF meltdown so I can leave more money to my children. I am 72, and in my second marriage. My money will go to my children and my husband’s money to his children. I have about $650,000 non-registered money in a dividend fund, $226,000 in a TFSA, and $840,000 in a RRIF. I am spending about $40,500 a year, plus TFSA contributions and tax of about $15,000. My husband is 82 with $200,000 in a RRIF and $100,000 in a TFSA. Our $1.3-million home will go 50% to my kids and 50% to his kids.—Mary

Hi Mary. What exactly do you mean by a RRIF meltdown? I used to think a RRIF meltdown was borrowing money to invest and using the tax deduction on the interest to offset or reduce the tax on registered retirement income fund (RRIF) withdrawals. Today it seems a RRIF meltdown is associated with any withdrawals above your income need or starting a RRIF before age 72.

Let’s forget about the term RRIF meltdown and talk about what you really want: getting more money to your children.

Right now, you are drawing the minimum from your RRIF and I can see, based on your current spending and assets, you will eventually have to pay about $352,000 in tax through your estate once you die. We will use this scenario as our base to test against other scenarios. I assume your investments will grow at 5%, your home at 3%, inflation is 2%, and........

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