What to Do About Money When Someone Dies In Canada: Financial Guide

This post is about what to do about money when someone dies in Canada.

All eight healthcare team members at Calgary Children’s Hospital sat in a semi-circle when we walked in. An empty couch faced everyone. It was ours to take. The lead doctor began with “there isn’t much time left.” I knew this was the toughest meeting of my life. One that would change our direction forever.

Here’s what nobody prepares you for…

Losing a child doesn’t just crush your heart. It can shatter your financial world too.

We sat numb in our far-too-quiet home a few days later. Reality hit hard. I had no emergency fund. We’d have funeral expenses we never imagined planning. The parental leave we’d been counting on? Gone.

Friends left food at our door – I remember Greek and comfort food. But there was no discussion about the bills that wouldn’t stop coming. Nobody offered help navigating insurance claims. No one helped us organize time off or talk to our bosses. No one said “let’s see if you qualify for emergency assistance.”

Money became a lonely, taboo topic of grief. Something that felt too practical when we were already drowning.

Three days later, I sat on our couch staring at my banking login. I tried repeatedly to log into my RBC checking account. Error. Error. “WHAT?!?!?” I bellowed.

Then it clicked. I didn’t even bank at RBC.

My brain, wracked with grief, couldn’t remember which bank I used. Never mind paying bills or balancing auto-pays. The worst part? All the financial advice assumed I could think clearly. I couldn’t even remember to brush my teeth.

Friends would say “Can they delay your debt?” instead of “Let me call them for you to delay that debt.” Well-meaning advice felt like being told to climb Mount Everest when I could barely crawl out of bed.

That’s when I realized normal financial advice doesn’t work during grief.

Why Your Brain Can’t Handle Money Decisions During Grief

You are not broken if you’re struggling to think clearly about finances. “Grief brain fog” is as real as any medical condition.

When you lose someone you love, your brain interprets this as an existential threat. It floods all your brain power toward emotional survival. Megan Devine explains it perfectly: “If you think of the mind as having 100 circuits of energy, grief takes up 99 of those. You have one unit of energy left for everything else.”

Grief brain fog means you might read the same document five times and retain nothing. You might forget your PIN at the store. You might try to get into someone else’s house. Repeatedly (I am very sorry unit 1312). 

Canadian Government Benefits You Need to Know About When Someone Dies in Canada

Most Canadian families don’t realize how many financial safety nets exist. The challenge is knowing what’s available and accessing it quickly.

Canada Pension Plan (CPP) Death Benefit

The CPP Death Benefit can provide a one-time payment of $2,500 to help with immediate expenses if you qualify. You must apply within 60 days of death. But here’s what most people don’t know – you can apply online through your Service Canada account.

The person who pays for the funeral usually gets this benefit. If that’s you, apply as soon as possible. The money typically arrives within 6-8 weeks.

Canada Child Benefit Continuation

As of 2025, Canada Child Benefit payments continue for six months after a child’s death. This prevents immediate financial shock that used to devastate grieving families.

You don’t need to apply for this continuation. Service Canada automatically extends payments when they receive the death certificate.

Employment Insurance Bereavement Benefits

Employment Insurance now offers multiple programs for family crises. Family Caregiver Benefits provide up to 35 weeks at 55% pay for families with critically ill children. Compassionate Care Benefits offer 26 weeks for end-of-life care situations.

These benefits can often be combined and shared among family members. Apply through your online Service Canada account or by phone.

Old Age Security (OAS) and Guaranteed Income Supplement (GIS)

If your loved one received OAS or GIS payments, you must notify Service Canada immediately. Continued payments after death create overpayments that must be repaid. But Service Canada also provides survivor benefits you might qualify for. 

The Allowance for the Survivor provides monthly payments to low-income Canadians aged 60-64 who have lost a spouse or common-law partner. In 2025, this benefit provides up to $1,441 per month.

Decide What’s Actually Urgent vs. What Feels Urgent

Here’s what I wish someone had told me in those first few months. Most financial decisions will feel urgent. Few actually are.

Handle Within the First Week

• Check your checking account for immediate living expenses. You need to know if you can pay for groceries and gas.
• Start your CPP Death Benefit application. This $2,500 helps with immediate funeral costs.
• Notify banks about potential payment deferrals if money is tight. The sooner they understand your situation, the more options they can provide.
• Ensure essential insurance coverages continue. Contact HR if the deceased had workplace benefits that might continue for dependents.

Can Wait 30-90 Days

• Investment account changes rarely need immediate attention. Markets will still be there in a month.
• Mortgage refinancing decisions require clear thinking. Wait until your mind feels more reliable.
• Tax planning strategies can wait. The Canada Revenue Agency allows six months for final tax returns.
• Insurance policy reviews need careful consideration. Don’t make hasty changes to life insurance or other policies.

Can Wait 6-12 Months

• Major purchases over $1,000 should wait. Your needs and priorities may shift as you process your loss.
• Retirement planning changes require long-term thinking. Give yourself time to understand your new financial reality.
• Estate planning updates are important but not urgent. Focus on immediate needs first.
• Long-term investment changes can wait until you trust your judgment again.
• Poor financial decisions made during acute grief often need to be undone later. I decided cryptocurrency was a great investment during my grief fog. This put me in a worse position than if I had just delayed new changes.
• Many grieving people sell investments at exactly the wrong time. They make impulsive high-ticket purchases. They commit to financial obligations they can’t sustain. All because grief makes everything feel urgent.

Switch Your Brain to Low Battery Mode

Imagine your brain like your phone with six percent battery. It can handle essential functions. But if you run multiple apps, it will shut down completely.

This is called cognitive load reduction. It’s essential for your financial survival.

Cognitive load reduction means deliberately simplifying decisions. Don’t do anything too complicated. In this stage, “good enough is good enough.”

When your smartphone charges to 80 percent, it automatically shuts off low power mode. This point in your grief journey is when you can trust yourself with more complex money matters.

Banking Hardship Programs Most Canadians Don’t Know About

Canadian banks offer hardship programs that can provide immediate relief. Most grieving families never learn about these options.

Royal Bank, TD, Scotiabank, BMO, and CIBC all offer mortgage payment deferrals up to six months. They provide skip-a-payment options for loans and credit cards. They offer case-by-case credit relief for unique situations.

The key is contacting your bank immediately. The sooner they understand what’s happening, the sooner they can help.

Call the customer service number on your card or statement. Say “I’m calling about hardship options due to a family death.” Most banks have dedicated teams for these situations.

Who Can Help When You Can’t Think Clearly

Canadian families often struggle asking for help, especially with finances. Research shows bereaved individuals who use support from others have better brain function and fewer long-term problems.

RELATED: Read this 10 minute routine to help you throughout your day

Tasks Someone Else Can Handle

Routine bill payments can be managed by a trusted family member or friend. Give them access to your online banking or have them sit with you while you pay bills.

Financial calls with banks or creditors often overwhelm grieving people. Ask someone to make these calls for you or sit beside you during conversations.

Research options and create a list of choices for you to pick from. You might not be able to research mortgage rates, but you can choose between two options someone else found.

Professional services like accountants or financial advisors can handle complex tasks. They understand you’re not thinking clearly and can guide decisions appropriately.

What Still Needs Your Direct Involvement

Signing legal documents requires your personal attention. Don’t delegate this, but do ask for help understanding what you’re signing.

Major financial decisions like selling property or changing investments need your direct input. But you can delay these decisions until you feel more capable.

Accessing government benefits often requires your personal information and signature. But someone can help you fill out applications.

Your Gentle Action Plan for the First Month

Instead of a pressure-filled 72-hour emergency plan, here’s a gentler approach that acknowledges your grief while protecting your finances.

First Few Days

Take a deep breath. Very few financial decisions truly need immediate action.

Find one trusted person who can help with practical tasks. This might be a family member, close friend, or family advisor.

Locate important documents. Don’t organize everything – just find bank statements, insurance policies, and identification.

Make sure you have access to enough cash for immediate needs. If not, contact your bank about temporary increases to daily withdrawal limits.

Within the First Week

• Apply for the CPP Death Benefit online at canada.ca or by calling Service Canada at 1-800-277-9914.
• Notify Service Canada about any OAS or GIS payments to prevent overpayments.
• Contact your loved one’s employer about final paychecks and benefit continuation.
• Call your bank to discuss your situation and learn about available support programs.

Within the First Few Monts

• Apply for Employment Insurance bereavement benefits if eligible.
• Review monthly bills and identify which ones you can temporarily pause or reduce.
• Reach out to insurance companies to understand policy changes and benefit claims.
• Schedule appointments with professionals (accountant, financial advisor, lawyer) for guidance on longer-term decisions.

Remember: This Gets Easier

The fog will lift. Your ability to make financial decisions will return. Right now, your job is to keep your family financially safe while your brain heals.

You have permission to say “I can’t think clearly right now and need time.” You can ask representatives to repeat information by saying “I’m dealing with a family emergency and need you to speak slowly.”

Most importantly, remember that protecting your financial future starts with being gentle with yourself today.

Download Your Canadian Bereavement Financial Checklist

This checklist walks you through each step mentioned in this guide when someone dies in Canada. It includes phone numbers for Canadian government services and scripts for difficult conversations with banks and employers.

The checklist is designed for Canadian families and includes province-specific resources where programs vary across the country.

This post is all about what to do with your money in the period when someone dies. It includes ideas for places to receive financial assistance, helps with understanding what to do urgently and includes a Canadian Bereavement Financial Checklist that bereaved families can use. 

Download Your Canadian Bereavement Financial Checklist Here: