knowledge topics
Death of an RRSP Annuitant
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 annuitant/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 Registered Retirement Savings Plan due to the death of an annuitant.2
- 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 refund of premiums.5
- Explain how proceeds received directly by a qualified beneficiary from a deceased annuitant’s registered plan will be treated for tax purposes.
- Explain how a qualified beneficiary who receives proceeds indirectly from a deceased annuitant’s registered plan may defer the taxes on such an amount.6
- Explain who may contribute to a spousal Registered Retirement Savings Plan on behalf of a deceased contributing spouse.
- Explain how the death of a Registered Retirement Savings Plan annuitant is treated for tax purposes.
- When the surviving spouse is the sole beneficiary of the deceased’s Registered Retirement Savings Plan
- When the surviving spouse is not the sole beneficiary of the deceased’s Registered Retirement Income Fund, and a qualified beneficiary is named
- When the surviving spouse is not the sole beneficiary of the deceased’s Registered Retirement Income Fund, and no qualified beneficiaries are named
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

REFERENCES
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/glssry-eng.html#refund
- http://www.cra-arc.gc.ca/E/pub/tg/rc4177/rc4177-e.html#P87_13733
- 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/tp/it500r/it500r-e.html#P494_37528
- http://www.cra-arc.gc.ca/E/pub/tp/it500r/it500r-e.html#P88_7399