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 named as beneficiary under a pension plan for survivor benefits?
Position: No
Reasons: The relevant provisions of the Regulations only refer to spouse or former spouse.
STRATEGY INSTITUTE
1998 Round Table
Question
Can a spousal testamentary trust, created under a registered pension plan member’s “Last Will and Testament”, be named as the member’s beneficiary under the plan for purposes of receiving the survivor’s entitlements to a pension income? If yes, how can the beneficiary election be set up with the pension administrator?
Response
The provisions of paragraphs 8503(2)(d), (e) and (f), and 8506(1)(d) and (e) of the Income Tax Regulations provide for the survivor benefits that may be paid as a result of the death of a member of a registered pension plan. These provisions refer to the deceased member’s spouse or former spouse and not to a spousal trust. Consequently, a spousal testamentary trust cannot be named as a member’s beneficiary for the purpose of receiving survivor benefits.
Prepared by M.P. Sarazin
June 12, 1998
981322
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