CRA finds that a widow who had resided in the home of her deceased husband could access the HBP program and first-time home buyer’s credit

We have published summaries of the questions posed at the 11 October 2019 APFF Financial Strategies and Instruments Roundtable (other that the two questions - Q.1 and Q.3 - for which CRA stated it was still thinking about its answer) along with a translation of the full text of the preliminary written answers of CRA. Next, we will be publishing the (regular) 2019 APFF Roundtable on a piecemeal basis.

First, Q.2 of the Financial Strategies and Instruments Roundtable. Given that a widow, who had been living in the home owned by her deceased husband, was no longer considered to be his spouse when, shortly after his death, she acquired a condo, she was permitted under the home buyer plan rules to use RRSP funds for the purchase and was entitled to the first-time home buyer’s credit. She also would have been entitled under the HBP rules to use her RRSP funds on an acquisition of the home of her deceased husband from the estate, provided that there was an agreement in writing for its acquisition.

Neal Armstrong. Summary of 11 October 2019 APFF Financial Strategies and Instruments Roundtable, Q.2 under s. 146.01(1) – regular eligible amount – (f) and s. 118.05(1) – qualifying home – (a).