Comments on: RRIF and RRSP Losses After Death http://blog.taxresource.ca/rrif-and-rrsp-losses-after-death/ Canadian Tax Help & Financial Planning Resources Sun, 12 Feb 2012 02:53:18 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Tax Guyhttp://blog.taxresource.ca/rrif-and-rrsp-losses-after-death/comment-page-1/#comment-9723 Tax Guy Sat, 19 Feb 2011 16:24:42 +0000 http://blog.taxresource.ca/?p=2666#comment-9723 Stephen,If you designate your spouse as either successor annuitant or as the direct beneficiary of the RRSP, RRIF, LIF, LIRA, LRIF etc. This allows for tax-deferred rollovers at death. Beneficiary designations can also be made via your Will.With the TFSA you can name your spouse as survivor or the beneficiary. Survivor allows the spouse to take over the TFSA following death. Stephen,

If you designate your spouse as either successor annuitant or as the direct beneficiary of the RRSP, RRIF, LIF, LIRA, LRIF etc. This allows for tax-deferred rollovers at death. Beneficiary designations can also be made via your Will.

With the TFSA you can name your spouse as survivor or the beneficiary. Survivor allows the spouse to take over the TFSA following death.

]]> By: stephen chttp://blog.taxresource.ca/rrif-and-rrsp-losses-after-death/comment-page-1/#comment-9719 stephen c Sat, 19 Feb 2011 11:59:36 +0000 http://blog.taxresource.ca/?p=2666#comment-9719 Can registered accounts (presently LIF, RRSP and TFSA) be rolled over to an ex-wife's RRSP without incurring those horrendous taxes?If not, I would assume the only way to avoid the high taxes, would be some form of life insurance, would you agree? Can registered accounts (presently LIF, RRSP and TFSA) be rolled over to an ex-wife’s RRSP without incurring those horrendous taxes?

If not, I would assume the only way to avoid the high taxes, would be some form of life insurance, would you agree?

]]> By: Tax Guyhttp://blog.taxresource.ca/rrif-and-rrsp-losses-after-death/comment-page-1/#comment-7659 Tax Guy Wed, 03 Nov 2010 17:42:12 +0000 http://blog.taxresource.ca/?p=2666#comment-7659 Your father would have to name a beneficiary or successor annuitant. A named beneficiary will receive the value of the account. The successor annuitant, which is the spouse can take over the payments.In the event no one is named on the account itself, the proceeds pay to the estate. If there is a spouse, he or she can elect to take the RRSP/RRIF on a rollover basis. Your father would have to name a beneficiary or successor annuitant. A named beneficiary will receive the value of the account. The successor annuitant, which is the spouse can take over the payments.

In the event no one is named on the account itself, the proceeds pay to the estate. If there is a spouse, he or she can elect to take the RRSP/RRIF on a rollover basis.

]]> By: Barbhttp://blog.taxresource.ca/rrif-and-rrsp-losses-after-death/comment-page-1/#comment-7654 Barb Tue, 02 Nov 2010 22:49:55 +0000 http://blog.taxresource.ca/?p=2666#comment-7654 Hello Tax Guy: In your opening remarks, you stated that the "fair market value of the RRIF or RRSP right before death is included on their final tax return, unless there is a spouse or dependent minor who can take over the account tax-free." My father has an RRIF account in his name only - under what conditions would my mother be able to take over the RRIF account tax free when my father passes away? She is a retired senior with limited income. Thanks for your help with this. Barb Hello Tax Guy:
In your opening remarks, you stated that the “fair market value of the RRIF or RRSP right before death is included on their final tax return, unless there is a spouse or dependent minor who can take over the account tax-free.” My father has an RRIF account in his name only – under what conditions would my mother be able to take over the RRIF account tax free when my father passes away? She is a retired senior with limited income.
Thanks for your help with this.
Barb

]]> By: Tax Guyhttp://blog.taxresource.ca/rrif-and-rrsp-losses-after-death/comment-page-1/#comment-7609 Tax Guy Wed, 27 Oct 2010 13:36:30 +0000 http://blog.taxresource.ca/?p=2666#comment-7609 Hello Col,The successor annuitant simply takes over the payments. Therefore, the annual minimum is based on the deceased's life.The minimum payment for 2010 would be based on the fair market value of the RRIF at the close of business on December 31, 2009 and the percentage on the life of the deceased. The minimum payment may be taken at any point after January 1, 2010 and December 31, 2010.The attribution of the payment is in the hands of whomever received the payment. If the payment was received by the original annuitant before their death, then the payment is taxed in their hands. If the successor annuitant receives the payment, it is taxed in their hands. Hello Col,

The successor annuitant simply takes over the payments. Therefore, the annual minimum is based on the deceased’s life.

The minimum payment for 2010 would be based on the fair market value of the RRIF at the close of business on December 31, 2009 and the percentage on the life of the deceased. The minimum payment may be taken at any point after January 1, 2010 and December 31, 2010.

The attribution of the payment is in the hands of whomever received the payment. If the payment was received by the original annuitant before their death, then the payment is taxed in their hands. If the successor annuitant receives the payment, it is taxed in their hands.

]]> By: Colhttp://blog.taxresource.ca/rrif-and-rrsp-losses-after-death/comment-page-1/#comment-7604 Col Tue, 26 Oct 2010 21:28:40 +0000 http://blog.taxresource.ca/?p=2666#comment-7604 My question is regarding the RRIF of a deceased person going to the successor.My question is.... When a person passes away and the RRIF is transferred to a successor, what is the protocol for the annual payment? If the scheduled payment is Dec. 31st, and the transfer is done in October, does the payment still happen in December for the successor, who then becomes liable for the income, or can the payment be made to the annuitant (the deceased), before the transfer of ownership to the successor? Thank you! Col My question is regarding the RRIF of a deceased person going to the successor.

My question is….

When a person passes away and the RRIF is transferred to a successor, what is the protocol for the annual payment? If the scheduled payment is Dec. 31st, and the transfer is done in October, does the payment still happen in December for the successor, who then becomes liable for the income, or can the payment be made to the annuitant (the deceased), before the transfer of ownership to the successor?

Thank you!
Col

]]> By: Tax Guyhttp://blog.taxresource.ca/rrif-and-rrsp-losses-after-death/comment-page-1/#comment-7500 Tax Guy Mon, 11 Oct 2010 19:42:50 +0000 http://blog.taxresource.ca/?p=2666#comment-7500 The go after the beneficiary of the RRIF. The go after the beneficiary of the RRIF.

]]> By: Tax Guyhttp://blog.taxresource.ca/rrif-and-rrsp-losses-after-death/comment-page-1/#comment-7498 Tax Guy Mon, 11 Oct 2010 19:39:58 +0000 http://blog.taxresource.ca/?p=2666#comment-7498 The RRIF is taxed on your fathers final return. If the estate cannot pay, the aunt will be charged the proportional tax due on the RRIF received. The RRIF is taxed on your fathers final return. If the estate cannot pay, the aunt will be charged the proportional tax due on the RRIF received.

]]> By: Jeffhttp://blog.taxresource.ca/rrif-and-rrsp-losses-after-death/comment-page-1/#comment-7496 Jeff Mon, 11 Oct 2010 18:07:38 +0000 http://blog.taxresource.ca/?p=2666#comment-7496 As I understand, the estate will pay the taxes, so you will recieve the 83,000. If the estate does not have enough funds, then the estate will become bankrupt. Now at that point I am unsure if they can come after other family for that or not, but it was explained that the money you get is not touched. I am going through it now if I find out more I will pass it on. As I understand, the estate will pay the taxes, so you will recieve the 83,000. If the estate does not have enough funds, then the estate will become bankrupt. Now at that point I am unsure if they can come after other family for that or not, but it was explained that the money you get is not touched. I am going through it now if I find out more I will pass it on.

]]> By: Charlenehttp://blog.taxresource.ca/rrif-and-rrsp-losses-after-death/comment-page-1/#comment-7494 Charlene Mon, 11 Oct 2010 16:28:56 +0000 http://blog.taxresource.ca/?p=2666#comment-7494 My father left a RRIF in my aunt's name. The will goes to next of kin which is me and my 2 sisters. Who has to pay the taxes on the rrif? the rrif being about 83,000. thanks. My father left a RRIF in my aunt’s name. The will goes to next of kin which is me and my 2 sisters. Who has to pay the taxes on the rrif? the rrif being about 83,000. thanks.

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