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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To be aware of / to recognize and correctly name / to locate an appropriate resource
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To note the similarities and differences between two or more things
To determine an approximate value for
To find the value using mathematics
To change from one form or purpose to another
To reach a conclusion or make a judgement through careful study
To give the meaning of / to construe or understand / to translate orally