Death of a PRPP Member
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Define refund of premiums.1
- Identify the plans from which a refund of premiums may be received.2
- Define the beneficiaries who may qualify to receive a refund of premiums from a deceased plan member’s registered plan.3
- Surviving spouse
- Financially dependent child or grandchild
- Financially dependent child or grandchild because of an impairment in physical or mental functions
- Define financially dependent with respect to the qualification of a dependent child or grandchild.4
- Explain how a refund of premiums defers income tax consequences from the deceased plan member to a qualified beneficiary.
- Identify the types of plans of a qualified beneficiary to which capital property may be transferred tax-deferred from a Pooled Registered Pension Plan due to the death of a plan member.5
- Identify the individuals who must file a joint election with the Canada Revenue Agency to qualify the contribution received from a deceased plan member's assets as a refund of premiums.5
- Explain how proceeds received directly by a qualified beneficiary from a deceased plan member's registered plan will be treated for tax purposes.
- Explain how a qualified beneficiary who receives proceeds indirectly from a deceased plan member's registered plan may defer the taxes on such an amount.5
- Explain how the death of a Pooled Registered Pension Plan member is treated for tax purposes.
- When there is no successor member
- When the surviving spouse is the successor member
- When a qualified beneficiary is available
- Explain the estimated tax impact resulting from the death of a Pooled Registered Pension Plan member.
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