tag:blogger.com,1999:blog-4402283548766807872.post4707566194573148172..comments2024-03-20T02:26:06.500-04:00Comments on The Blunt Bean Counter: RRSP/RRIF Spousal Transfers on Death - Not so Automatic – Be Careful you don’t Create a Family WarThe Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger22125tag:blogger.com,1999:blog-4402283548766807872.post-54008835379696292172019-01-29T20:48:22.277-05:002019-01-29T20:48:22.277-05:00Hi Anon
I am sorry to hear about your husband. Un...Hi Anon<br /><br />I am sorry to hear about your husband. Unfortunately I do not provide personal tax planning advice on this blog. You question requires detailed analysis of your personal financial situation and future income flows. Once you feel up to it you should see a financial planner to help you make the decision. Ask friends for references if you dont have an accountant or planner.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-17207309009256904642019-01-29T17:43:37.684-05:002019-01-29T17:43:37.684-05:00My husband just passed at 73 and I (wife) am the a...My husband just passed at 73 and I (wife) am the annuitant successor for his RIF...I am 60 and still working fulltime (100,000.00)...so I don't really need his monthly RIF at the moment, just means more tax for me. I expect I will retire next year. Regarding his RIF; would appreciate your opinion as to whether I should just cash out the RIF or rollover and continue to receive the minimum amount (?3% currently)...it would mean I would have to claim as income on but I could also buy rrsps to offset. If I were to cash it in an pay the taxes, those taxes would be based on his income for this year, which would basically be the cash value of the rif as he just passed in early Janaury. So if he had for example 100000 in the RIF, the taxes I assume would be 30-40% correct?<br /><br />So which is more beneficial; i.e cash out or roll over. Difficult time to see things clearly.<br /><br />Thanks kindly.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-36791998944168903402017-07-24T14:18:06.380-04:002017-07-24T14:18:06.380-04:00Hi Anon
I am sorry I am not sure off the top of m...Hi Anon<br /><br />I am sorry I am not sure off the top of my head. You need to speak to the investment firm handling your RRIF to see if they will allow such.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-19480966919245900502017-07-21T23:03:06.904-04:002017-07-21T23:03:06.904-04:00I have a spousal RRIF. My husband just passed awa...I have a spousal RRIF. My husband just passed away. Can I transfer the spousal RRIF to my own RRIF, simplifying my RRIF withdrawals?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-70811573493146935952017-02-25T18:06:37.649-05:002017-02-25T18:06:37.649-05:00When the RRIF from your deceased wife is transferr...When the RRIF from your deceased wife is transferred to your RRIF, where do you show the offsetting amount on the income tax form?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-47334038450306717442017-02-15T23:28:52.102-05:002017-02-15T23:28:52.102-05:00My wife passed away last year. Her RRSP was rollo...My wife passed away last year. Her RRSP was rollover to my RRSP. I just received the T4RSP slip in my name with the rollover amount in Box 18 (Refund of premiums). Will I receive another bank issue slip to offset the T4RSP? Thanks!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-50604326366334528112017-02-14T22:31:42.072-05:002017-02-14T22:31:42.072-05:00I don't know you need to ask your estate lawye...I don't know you need to ask your estate lawyerThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-86103623742332475762017-02-14T17:53:27.041-05:002017-02-14T17:53:27.041-05:00An RRSP was left to an estate so the executors cou...An RRSP was left to an estate so the executors could control the money. The spouse was a financial spendthrift. To avoid tax the executors made a T2109 designation with the spouse and controlled the funds. The spouse promptly moved the funds to a new institution and absconded with the funds. Does filing the T2109 constitute a legal transfer or does the estate still own or control it in lawAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-24304572109395478032017-01-28T22:49:42.436-05:002017-01-28T22:49:42.436-05:00Hi Anon
This is a very strange situation I have n...Hi Anon<br /><br />This is a very strange situation I have never encountered. I cant help, you should speak to the bank about your questions.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-39767869512370129832017-01-27T09:02:52.811-05:002017-01-27T09:02:52.811-05:00I am the executor of my moms will. She passed awa...I am the executor of my moms will. She passed away last March 2017. The RIFF that she had she left to my dad. All the paper work was done so he could claim the RIFF but he refusing to go sign the papers at the banks to claim. Is there some kind of time limit as to when has to claim them and what options do I have?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-734193421116397812016-05-24T21:40:50.733-04:002016-05-24T21:40:50.733-04:00Hi Anon
Correct, the contribution room is not rel...Hi Anon<br /><br />Correct, the contribution room is not relevant. The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-26408962987985771192016-05-23T21:07:03.375-04:002016-05-23T21:07:03.375-04:00My understanding is that if the spouse (wife) is b...My understanding is that if the spouse (wife) is beneficiary of husband's RSP, then the husband's RSP can be rolled over tax free to wife's RSP upon husband's death? Even if the wife does not have any contribution room available on her RSP? i.e. contribution room is not a consideration in these instances. If you could confirm, thank you.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-4215609375383200632016-03-08T16:18:16.410-05:002016-03-08T16:18:16.410-05:00Hi Anon
If you are like most spouses, you are pro...Hi Anon<br /><br />If you are like most spouses, you are probably the beneficiary of your wife's RRSP and if she died, her RRSP would transfer tax free to you and thus, you have in essence got all your RRSP contributions back. You would then make your own yearly contributions going forwwardThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-19625195850983302772016-03-08T13:20:32.759-05:002016-03-08T13:20:32.759-05:00In contributing to a spousal RRSP for several year...In contributing to a spousal RRSP for several years, all my contribution room has been used up. I am named as the beneficiary. However, if my spouse were to die, I would have no RRSP contribution room in my own name. Would the fact that I had used my original contribution room to build the spousal RRSP mean that the full RRSP could then simply be transferred to me as an intact RRSP 9i.e., would my effective "transfer" of RRSP contribution room to my wife be recognized)? I am confused as to how the "lost" contribution room wouldn't translate into tax implications since I am unable to set up an RRSP of my own.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-34958008825572600612015-11-14T13:07:28.009-05:002015-11-14T13:07:28.009-05:00Hi Anon
Unfortunately, the estate may have an iss...Hi Anon<br /><br />Unfortunately, the estate may have an issue. You need to speak with an estate lawyer to see if you can do anything, I cannot provide you advice on this matter.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-82874563993422468892015-11-14T00:57:38.177-05:002015-11-14T00:57:38.177-05:00Please help! My mother passed away in DEC 2014,sh...Please help! My mother passed away in DEC 2014,she had RRSP's and we assumed that they would just roll over to my dad. <br /><br />We filed her 2014 taxes and paid amounts owing and thought all is well. Turns out she named no one in her RRSP forms as a beneficiary, What to do now? She did leave a will naming my dad as executor with ability to distribute assets as needed.<br /><br />We want to transfer RRSP to my dad tax free, he also already filed his 2014 taxes. Do we now have to file T1 adjustments for them both with the t2019 form? How would we then get the bank to issue the taxes in his name since no beneficiary was named? This is so confusing.<br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-224764316489802832015-07-17T10:10:23.253-04:002015-07-17T10:10:23.253-04:00Hi Anon:
I am not aware of any case law and I hav...Hi Anon:<br /><br />I am not aware of any case law and I have had a tax lawyer tell me they take a different interpretation than Christine on the above. Thus, I would seek a professional opinion. The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-66186044943041354472015-07-16T12:19:15.598-04:002015-07-16T12:19:15.598-04:00Is there any Canadian case law or legislative prov...Is there any Canadian case law or legislative provisions that address this situation? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-33099906518032934382012-12-10T09:30:24.744-05:002012-12-10T09:30:24.744-05:00Choosing the right lawyer is insurance you have ev...Choosing the right lawyer is insurance you have everything in place. Otherwise, it will lead to a family war.Jerryhttps://www.blogger.com/profile/02297947643006068426noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-57149786532981346362012-12-03T16:28:38.739-05:002012-12-03T16:28:38.739-05:00Sandi, Christine has kindly provided this response...Sandi, Christine has kindly provided this response to your question<br /><br />Sandi – seg funds bypass probate only if you designate a direct beneficiary. The point of my presentation is that a direct beneficiary designation is not appropriate in all situations, and people don’t realize that with a registered plan a surviving spouse could choose to take the gross amount in the plan, leaving the estate with the tax bill. In the case of a non-registered seg fund, a client may want to designate a beneficiary in the “protected class” if they are buying the fund for creditor protection – but in that case they still need to keep in mind that the capital gains tax liability will go to the estate even though the funds themselves will go to the direct beneficiary. In the case of a registered beneficiary, I would doubt that creditor protection would be a major issue, since registered funds usually already have creditor protection – if your client bought the seg fund for the guarantee feature (ie. either the guarantee payout at death, or the lifetime income benefit), then designating a direct beneficiary is probably not a priority for them. You should confirm with them whether avoiding probate is a priority – a lot of clients don’t understand that probate fees are extremely low across Canada, and they don’t realize the disadvantages of designated a beneficiary – if they are in a blended family, it may not be recommended. I find that once I explain to clients that having an asset go through probate usually leads to a more equitable distribution of their estate, they are more than happy to pay the probate fees and get rid of the direct beneficiary designation (again, assuming creditor protection is not an issue).The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-52527951649977282752012-11-30T15:30:22.046-05:002012-11-30T15:30:22.046-05:00Sandi, I need to confirm this, but I think you onl...Sandi, I need to confirm this, but I think you only bypass probate if the funds are left to your spouse. However, this still leaves you with the real problem being, your spouse can take the money and leave the tax bill to your estate.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-27685108193110467322012-11-30T07:46:24.169-05:002012-11-30T07:46:24.169-05:00What if the RRSP is in Segregated funds offered by...What if the RRSP is in Segregated funds offered by the Insurance companies, these funds bypass the probate fees anyway. Regards Sandisethi.ca Sandi Sethihttp://www.sandisethi.canoreply@blogger.com