Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Can the annuitant under an RRIF change the annuitant designation, to reflect their spouse as the new annuitant?
Position: No, this is not possible.
Reasons: Definitions of "RIF" and "annuitant" only permit the spouse to become the annuitant, after death of the first annuitant.
XXXXXXXXXX 2001-08553
G. Allen
July 6, 2001
Dear XXXXXXXXXX:
Re: Annuitant under a Registered Retirement Income Fund ("RRIF")
This letter is in reply to your letter dated May 11, 2001, in which you enquire whether it is possible to change the annuitant under a RRIF by designating the annuitant's spouse as the new annuitant under the RRIF. We note from your letter, that your question does not involve marital breakdown.
Confirmation of the tax consequences associated with completed transactions are provided by the relevant tax services office. Opinions concerning proposed transactions involving specific taxpayers will only be provided in response to a request for an advance income tax ruling. For more information concerning advance tax rulings, please refer to Information Circular 70-6R4 dated January 29, 2001, issued by the Canada Customs and Revenue Agency (the "Agency"). Copies of information circulars and interpretation bulletins are available from your local tax services office or on the Internet at the following site - http://www.ccra-adrc.gc.ca/formspubs/menu-e.html. However, we are prepared to provide the following general comments, which may be of assistance.
Retirement Income Fund ("RIF") is defined under subsection 146.3(1) of the Income Tax Act (the "Act"). In general, a RIF is an arrangement between a carrier and an annuitant under which, in consideration for property, the carrier undertakes to pay the yearly minimum amount to the annuitant and, where the annuitant so elects, to the annuitant's spouse or common-law partner after the annuitant's death.
In general, the annuitant under a RIF is defined to be the first individual to whom the carrier of the RIF has undertaken to make the payments out of or under the fund. After the death of the first individual, payments may continue to be made by the carrier to the first individual's surviving spouse or common-law partner, where an election described under the definition of RIF has been made by the first individual.
The definitions of RIF and annuitant do not make it possible for an individual, the first annuitant, to change the annuitant designation to reflect the first annuitant's spouse as the new annuitant under a RIF. A spouse may only become the annuitant under a RIF, after the death of the individual who is the first annuitant, where the election has been made under the RIF.
We trust the above comments will be of assistance.
Roberta Albert, CA
for Director
Financial Industries Division
Income Tax Rulings Directorate
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