The CRA Death Benefit for 2025 at $2,550 is significant support for families dealing with bereavement in Canada. The Canada Pension Plan (CPP) Death Benefit is provided in a lump sum to help cover immediate costs like funeral expenses and other post-death bills that families encounter. Here is the guide to eligibility, the application process, payment details, and other FAQs related to this benefit.
Overview of the CRA Death Benefit
The $2,550 CRA Death Benefit is the result of a partnership between the Canada Revenue Agency (CRA) and the Canada Pension Plan (CPP) for the provision of funeral and bereavement support. The standard payment for passings that occur in 2025 will be $2,500, with additional top-ups available to increase that amount to a maximum of $5,000 in specific cases where the deceased was not a CPP recipient and had no surviving spouse who would qualify for a survivor’s pension.
Who Is Eligible?
In order to qualify, the deceased individual must have contributed to the CPP for a minimum of a third of their contributory years (which means three years minimum, or a total of ten years at the very least). The individual must have resided legally in Canada, too. If there is an estate, the payment goes to the estate. Otherwise, it may be paid to the individual who is taking care of the deceased person’s funeral, the spouse or partner who is still alive, or, if there is none of the above, to the kin of the deceased person.
Application Process for 2025
It is easy but needs to be done within a certain time frame. The form ISP1200 can be completed online, sent by mail or dropped off at a Service Canada office. The documents needed are the death certificate, Social Insurance Numbers of both individuals, proof of the relationship (like a marriage certificate), and banking info for direct deposit. After a person dies, the application should be sent in 60 days if possible, but is accepted for up to a year after death.
Payment Schedule and Timeline
You will not be contacted at any certain time to receive your payment. Payment is dependent on the order in which claims are sent and approved. Generally, payment is sent to the applicant within 6 to 12 weeks after the application is approved. In some cases, there might be a delay because the applicant’s documents need extra verification.
Key Reminders and Timeline Restrictions
To ensure there are no unnecessary delays, applicants are encouraged to complete the required documents and submit them as soon as possible. Delayed payments can occur when an application is incomplete or when required documents are missing. This helps us to help families with potential immediate financial needs as uncompromised processing times begins response to such needs.
Very Short Data Table
| Detail | Amount or Info |
|---|---|
| Base Amount (2025) | $2,500 |
| Top-Up Eligible | Up to $5,000 |
| Processing Time | 6–12 weeks |
| Application Limit | 1 year after death |
Three Short FAQs
Q1: Is the death benefit taxable?
If the benefit is payable to the estate, there is no tax, otherwise, it may be income tax taxable if payment is made directly to an individual.
Q2: How soon must I apply?
It is best to apply within 60 days; the absolute last date to apply is one year from the date of death.
Q3: Who receives the benefit if there is no estate?
The benefit may go to the person who paid for the funeral, then the spouse or partner, then the next-of-kin.
