knowledge topics
Death of an RRIF Annuitant
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Define a successor annuitant.
- Define the qualified beneficiaries who may receive a designated benefit from a deceased annuitant’s Registered Retirement Income Fund.1
- 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.2
- Define a designated benefit.3
- Explain how a designated benefit defers income tax consequences from the deceased annuitant to a qualified beneficiary.
- Identify the types of plans of a qualified beneficiary to which capital property may be transferred tax-deferred from a Registered Retirement Income Fund due to the death of an annuitant.4
- Identify the individuals who must file a joint election with the Canada Revenue Agency to qualify the contribution received from a deceased annuitant’s assets as a designated benefit.5
- Explain how proceeds received directly by a qualified beneficiary from a deceased annuitant’s Registered Retirement Income Fund will be treated for tax purposes.
- Explain how a qualified beneficiary who receives proceeds indirectly from a deceased annuitant’s Registered Retirement Income Fund may defer the taxes on such an amount.6
- Explain how the death of a Registered Retirement Income Fund annuitant is treated for tax purposes.
- When a successor annuitant is named
- When no successor annuitant is named, but the surviving spouse is the sole beneficiary of the deceased’s Registered Retirement Income Fund
- When no successor annuitant is named, but the surviving spouse is not the sole beneficiary of the deceased’s Registered Retirement Income Fund
- When no successor annuitant is named, but a qualified beneficiary is available
- When no successor annuitant is named, and no qualified beneficiaries are available
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
REFERENCES
- http://www.cra-arc.gc.ca/E/pub/tp/it500r/it500r-e.html#P175_22491
- http://www.cra-arc.gc.ca/E/pub/tg/rc4177/rc4177-e.html#qb
- http://www.cra-arc.gc.ca/E/pub/tg/t4040/t4040-e.html#chapter5
- http://www.cra-arc.gc.ca/E/pub/tg/t4040/t4040-e.html#chapter5
- http://www.cra-arc.gc.ca/E/pub/tg/t4040/t4040-e.html#chapter5
- http://www.cra-arc.gc.ca/E/pub/tp/it500r/it500r-e.html#P88_7399
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