23 August 1994 External T.I. 9419605 - TRANSFER ON RPP AFTER DEATH OF MEMBER

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:

Transfer of a pension fund to a RRIF under a will

Position TAKEN:

General comments

Reasons FOR POSITION TAKEN:

Proposed transaction

 			5-941960
XXXXXXXXXX	G. Martineau
(613) 957-8953

Attention: XXXXXXXXXX

August 23, 1994

Dear Sirs:

Re: XXXXXXXXXX

We are writing in reply to your letter of July 26, 1994 concerning the proposed transfer to an registered retirement income fund (RRIF) of a death benefit payable under a pension plan to the common-law spouse of XXXXXXXXXX pursuant to her will.

As explained in Information Circular 70-6R2 (a copy of which is enclosed for your information), it is not the Department's practice to comment on proposed transactions involving specific taxpayers other than in the form of an advance income tax ruling. We offer, however, the following general comments.

Subsection 147.3(7) of the Act1 permits the direct transfer on behalf of the spouse of an registered pension plan (RPP) member of a lump sum to which the spouse is entitled as a consequence of the death of the member to an RRIF under which the spouse is the annuitant. Paragraph 248(8) of the Act states that "a transfer, distribution or acquisition of property under or as a consequence of the terms of the will ... shall be considered to be a transfer, distribution or acquisition of the property as a consequence of the death of the taxpayer...". An RPP is a pension plan that was registered for the purposes of the Act.

A T2151 form may be used to instruct the RPP administrator to directly transfer the payment to the RRIF. This form may be obtained at your local district office.

The above comments reflect an expression of opinion only and are not binding on the Department, as explained in paragraph 21 of Information Circular 70-6R2. We trust, however, that they are of assistance.

Yours truly,

for Director
Financial Industries Division
Rulings Directorate
Policy and Legislation Branch

1 All references to statute are to the Income Tax Act S.C. 1970-71-72,c.63 as amended consolidated to June 10, 1993 (the "Act").

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