13 January 2005 Internal T.I. 2004-0103501I7 - Death of RRSP or RRIF annuitant: Election Form

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.

Principal Issues: What is the impact of the Supreme Court of Canada decision in the Thibault case on reporting amounts held in an RRSP or RRIF on the annuitant's death?

Position: There is no impact. If the designation of the spouse or common-law partner is provided in the will or in the marriage contract, the entire refund of premiums or eligible amount is transferred to the spouse's RRSP or RRIF and all the RRSP or RRIF property is distributed before the end of the exempt period, the trustee of the plan can issue the slip as if the designation was made in the RRSP or RRIF contract.

Reasons: Agrees with our administrative position.

		January 13, 2005

	HEADQUARTERS	HEADQUARTERS
	Individual Returns and Payments	Michelle Desrosiers
	Processing Directorate	  Notaire, M.Fisc.

	Attention: Phil Girvin
		2004-010350

RRSP/RRIF rollover to qualified beneficiary at death of Quebec resident annuitant

This is in response to your electronic message of November 17, 2004 wherein you asked how the Supreme Court of Canada decision in Thibault case (Scotia McLoed v. Bank of Nova Scotia and Guy Thibault and MNR, 2004 DTC 6437) would affect the reporting on T4RSP or T4RIF slips of amounts paid out of an registered retirement savings plan (RRSP) or registered retirement income funds (RRIF) when a deceased annuitant was a resident in Quebec.

Our comments

The Supreme Court of Canada decision in the Thibault case would not have any impact on the reporting of amounts paid out of an RRSP or RRIF upon the annuitant's death where the recipient is a beneficiary named in the deceased annuitant's will or the recipient receives the amount as a result of a gift mortis causa in a Quebec marriage contract.

We believe that the general rules of application described in the T4RSP and T4RIF Guide apply in this case. As such, in this situation, we agree that the short method of reporting is appropriate.

For your information a copy of this memorandum will be severed using the Access to Information Act criteria and placed in the Canada Customs and Revenue Agency's electronic library. A severed copy will also be distributed to the commercial tax publishers for inclusion in their databases. The severing process will remove all material that is not subject to disclosure, including information that could disclose the identity of the taxpayer. Should your client request a copy of this memorandum, they can be provided with the electronic library version, or they may request a severed copy using the Privacy Act criteria, which does not remove client identity. You should make requests for this latter version to Mrs. Jackie Page at (819) 994-2898. A copy will be sent to you for delivery to the client.

for Director
Financial Industries Division
Income Tax Rulings Directorate