knowledge topics
Death of a Locked-In Retirement Savings Vehicle Annuitant
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Identify that the treatment of locked-in retirement savings property upon the death of an annuitant differs across jurisdiction.
- Identify how locked-in retirement savings property will be treated upon the death of an annuitant (subject to jurisdiction).
- Identify potential outcomes that may occur due to the death of a locked-in retirement savings vehicle annuitant.
- Direct transfer of property to a locked-in retirement savings vehicle belonging to the current or former spouse of the deceased annuitant
- Direct transfer of property to a locked-in retirement income vehicle belonging to the current or former spouse of the deceased annuitant
- Direct transfer of property to a registered retirement savings plan† belonging to the current or former spouse of the deceased annuitant
- Direct transfer of property to a registered retirement income fund
- Direct transfer of property to an insurance company to purchase a life annuity payable to the current or former spouse of the deceased annuitant
- Cash payment to the current or former spouse of the deceased annuitant
- Cash payment to the beneficiary of the locked-in retirement savings vehicle
- Cash payment to the estate of the deceased annuitant
- Identify that in some jurisdictions pension legislation may override the designation of a beneficiary on the locked-in retirement savings vehicle or in a will if a spouse survives the annuitant of a locked-in retirement savings vehicle and was not named as the beneficiary under the plan.
- Identify that a spouse who has waived their right in writing to the spousal death benefit associated with a locked-in retirement savings vehicle may not receive the residual value of the locked-in retirement savings vehicle upon the death of the annuitant.
- Explain the tax impact resulting from of the death of a locked-in retirement savings vehicle annuitant.
† Registered retirement savings plan in this context relates to any plan that is permitted to accept a transfer from the locked-in retirement income vehicle. Examples may include registered pension plans, Registered Retirement Savings Plans, Pooled Registered Pension Plans and Specified Pension Plans.
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK
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