| 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 therein rendering certain numbers quoted
obsolete. Please
consult current tax rules or directly at CCRA
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