CRA confirms that a surviving spouse who has been predesignated can qualify as a RRIF annuitant even if he or she does not receive any annuity payments

Where the death of an annuitant under a RRIF is followed very shortly by the death of the surviving spouse, CRA accepts that the (briefly) surviving spouse will qualify as an annuitant under the RRIF provided that the predeceased spouse had so designated the survivor by will or in the RRIF contract – even if the surviving spouse did not receive any annuity payments before his or her death. This means that the deemed inclusion of the fair market value of the fund property will be in the hands of the second-to-die of the two spouses – except to the extent that there then is a transfer out of the fund to a financially dependent child or other eligible beneficiary (in which case, the eligible amount of the transfer is included in the transferee’s income under s. 146.3(5)(a).)

Neal Armstrong. Summaries of 2015-0592681E5 Tr under s. 146.3(1) – annuitant and s. 146.3(6.2).