Can I refuse the Canada Pension Plan Death Benefit?
The Death Benefit is usually $2500 and is paid to the estate of the deceased. They are entitled to it as they paid into CPP their whole life. When taxed in the estate it works out to around $500 tax, depending on the province. The cost is intended to assist with the burial costs. Because its dealt with in the estate your personal taxes are not effected. If your fortunate enough not to need this money then I agree with the others that you could share it with the community. CanadaHelps.org will be able to provide you with a list of charities in your area that could benefit from these funds. A donation in your fathers name would be a nice legacy.