CRA indicates that the death of the surviving spouse before she received payment of the testator’s legacy of his RRIF precluded access to the designated benefit rules

On the death of Mr. A, his Will provided a particular legacy of his RRIF to his surviving spouse (Mrs. B), who died half a year later before his estate was administered. CRA indicated that since Mrs. A died before receiving the legacy, the fair market value of the RRIF property was included in the income of Mr. A in his terminal return.

Neal Armstrong. Summary of 6 October 2017 APFF Financial Strategies and Instruments Roundtable, Q.6 under s. 146.3(1) – designated benefit.