Higgins v. The Queen, 2013 DTC 1163 [at 889], 2013 TCC 194 (Informal Procedure)
The taxpayer's father died intestate, and the taxpayer received 1/2 of his RRIF. Respecting the calculation of the liability under s. 160.2, Rowe DJ adopted the statement in Belanger v. The Queen, 2007 TCC 502, at para. 12 that:
Paragraphs 146.3(5)(a)(b) and (c) of the Act provide exceptions that can reduce this income inclusion, but none of these was raised in argument nor are they applicable in this case. Subsection 146.3(6) of the Act provides that when the last annuitant under a RRIF dies, that annuitant is deemed to have received, immediately before death, an amount under the RRIF equal to the fair market value of the property of the fund at the time of the death.
|Locations of other summaries||Wordcount|
|Tax Topics - Income Tax Act - Section 138 - Subsection 138(12) - Life Insurance Policy||59|
Sunita D. Doobay, "Designated Beneficiary and Creditors", Canadian Tax Highlights, Vol 22, No 6, June 2014, p. 6
In Kiperchuk (2013 TCC 60), the court concluded that a deceased taxpayer's RRSP passed outside the estate directly to a designated beneficiary who was legally still the deceased's spouse before death. Similarly, in Higgins (2013 TCC 194) the court concluded that the deceased's life insurance passed directly to his daughters outside his estate. In Kiperchuk, however, the minister argued only subsection 160(1); in Higgins he also argued section 160.2. That section grants the minister recourse against designated RRSP and RRIF beneficiaries for taxes that relate to the plan amounts and that are owed by the deceased annuitant's estate.