Eligible income from a testamentary trust

A testamentary trust is a trust or estate that is generally created on and as result of the death of the person. The terms of the trust are established by the will or by court order in relation to the deceased individual’s estate under provincial or territorial law.

Where a testamentary trust receives the types of income described below and designates an amount in respect of certain beneficiaries of the trust, the beneficiaries can transfer the designated amount to their own RRSP if certain conditions are met. For purposes of these transfers, eligible income received by a testamentary trust in a year throughout which it was a resident of Canada includes:

Generally, these lump-sum payments are transferred indirectly to the individual’s RRSP.

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