22 September 1998 Internal T.I. 9820637 - RRIF CONTINUING ANNUITANT

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 amounts held in two particular RRIFs at the time of the annuitants death be included in the annuitants income?

Position: Based on available information, No.

Reasons:

The deceased elected to have her spouse continue as the annuitant under both plans after her death and there is no indication these elections were revoked. In consequence, the deceased annuitant’s spouse continues as the annuitant and no provision of the Act applies to allow or require any amount to be included in the income of the deceased.

		September 22, 1998

	Ottawa Tax Services Office	Headquarters
P. Y. Middlestead, Director	W.C. Harding
(613) 957-8953
	Attention: Bill Lutha
	                  Estates, 4th Floor
		982063

XXXXXXXXXX

This is in reply to your memorandums of August 12 and September 4, 1998, in respect of adjustments requested by XXXXXXXXXX on behalf of himself and the estate of his late spouse, XXXXXXXXXX.

XXXXXXXXXX has reported as income in 1994 through 1997, amounts he has received out of RRIFs under which his late wife was the annuitant. However, XXXXXXXXXX has requested these amounts be excluded from his income and that the value of two RRIFs at the time of his spouse’s death be added to her income for the year of her death. XXXXXXXXXX believes this is provided for in the Income Tax Act (the “Act”).

Your office obtained and provided us with copies of the original RRIF agreements entered into by XXXXXXXXXX and the financial institutions that issued the two RRIFs in question to her. Both of these agreements indicate that XXXXXXXXXX was designated as the “annuitant” of the RRIFs on her death. In consequence, unless a subsequent revocation of the election was made, XXXXXXXXXX was not the “last annuitant” under either plan at the time of her death and no provision of the Act will apply to allow or require the value of the RRIFs to be included in her income at the time of her death. For your information, had XXXXXXXXXX named her husband as the beneficiary of the RRIFs but not as the annuitant of the RRIFs the adjustment requested could be permitted under the provisions of subsection 146.3(6) of the Act.

Paul Lynch
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch