What happens if I die before fully repaying the HBP withdrawal?

If you die leaving an outstanding HBP balance owing, the outstanding balance, less any RRSP contributions made before you died, is included in your income for the year of your death.

However, if certain conditions are met, your surviving spouse or common-law partner, who is resident in Canada, may elect, jointly with your estate’s legal representative, to treat the outstanding balance as that of the spouse, thereby eliminating any inclusion of the outstanding balance in your final income tax return.

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