| Glossary of
Financial Terms | | |
 The
Companion Advisor: Taxes
& Estates
Death and taxes - Part 6/7
Estate as beneficiary
Sometimes, an RRSP annuitant will name his or her estate
as the beneficiary of the plan. In this case, where an amount is paid from an
RRSP to the estate for the benefit of either the spouse or a financially dependent
child or grandchild (assuming they were beneficiaries under the will), the legal
representative of the estate, along with the beneficiary, can file an election
with Revenue Canada to treat the amount as though it was transferred directly
to the spouse or child from the RRSP. In this case, the same refund of premiums
treatment can be obtained.
Example #6
Nancy is the beneficiary of the entire estate, as specified in Jack's will. Jack
has named his estate as the beneficiary of his RRSP. Upon Jack's death, Nancy
and the executor of Jack's estate could file a joint election to deem the $300,000
to be refund of premiums. When transferring this amount to her RRSP, Nancy will
receive an offsetting contribution receipt as though she'd received the money
directly as a named beneficiary of the RRSP. |
The information in is article
is subject to change, therefore be advised its content should be viewed as
illustrative to the context of the article. Income tax laws change over time,
thereby rendering certain numbers quoted obsolete. Please
consult current tax rules or directly at CCRA.
|
|
Use this link to load a printer-friendly
version of this document. |
* * *
Questions about the above send e-mail to:
moneyman@fiscalagents.com 
©
, Fiscal Agents Money Management Newsletter
25 Lakeshore Road, Oakville, On L6K 1C6.
(905) 844-7700
|
|
|
