Why can final taxes be lower with a later assumed death?

A later death changes the whole projection, not just the year when the same assets are taxed. More retirement withdrawals, spending and taxes may already have reduced a taxable RRSP/RRIF balance. Funds may also have moved into accounts with different tax treatment.

For example, a smaller registered balance at death can produce less final income tax even if the household paid more tax during the extra living years. In today’s dollars, a tax payment further in the future is also discounted for inflation.

Compare the account composition, lifetime taxes and final Legacy details in both runs, using the same dollar basis. A lower final tax alone does not demonstrate that the plan leaves more after-tax money overall.