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 a spousal trust be the annuitant under an RRSP for the purposes of paragraph 60(l) of the Act?
Position:
No
Reasons:
A spousal trust can't receive a "refund of premiums" nor can an RRSP be registered with a trust as the annuitant.
972417
XXXXXXXXXX M.P. Sarazin
Attention: XXXXXXXXXX
November 6, 1997
Dear Sirs:
Re: Spousal Trust Beneficiary of an RRSP
This is in reply to your facsimile of September 10, 1997, wherein you requested our views as to whether a spousal trust would be a qualifying beneficiary of a registered retirement savings plan ("RRSP") for the purposes of paragraph 60(l) of the Income Tax Act (the "Act").
Paragraph 60(l) of the Act provides a deduction for the portion of a refund of premiums received by a taxpayer and included in the taxpayer's income that has been transferred to the particular taxpayer's RRSP during the year or within 60 days after the end of the year. A refund of premiums is defined in subsection 146(1) of the Act to mean any amount paid to a spouse of the annuitant out of or under an RRSP where the annuitant dies before the maturity of the plan and the amount was paid as a consequence of the death.
Since a spousal trust cannot receive a refund of premiums because it is not the spouse of the deceased RRSP annuitant, we are of the view that paragraph 60(l) of the Act will not apply to any amount received by a spousal trust. In any case, a trust will not qualify as an annuitant under an RRSP under the provisions of section 146 of the Act.
We trust the above comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1997
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1997
Email this Content