As a general rule, when an RRSP did not mature before the annuitant's death, the deceased annuitant is considered to have received, just before death, an amount equal to the fair market value (FMV) of all property of the RRSP. This amount has to be included in the deceased annuitant's income. However, this amount may be reduced if it is paid to a qualifying survivor as a refund of premiums. It can also be reduced if it is paid to the deceased annuitant's estate and the deceased annuitant's legal representative and a qualifying survivor elect to treat some or all of it as being paid to the qualifying survivor. Only the spouse, common-law partner, or a financially dependent child or grandchild can be a qualifying survivor.
In some circumstances, the amount received as a refund of premiums by a qualifying survivor can be transferred and the survivor can claim a deduction for the amount transferred.
Forms and publications
- Guide T4013, T3 Trust Guide
- T3RET, T3 Trust Income Tax and Information Return
- Form T1090, Death of a RRIF Annuitant - Designated Benefit or Joint Designation on the Death of a PRPP Member
- Form T2019, Death of an RRSP Annuitant - Refund of Premiums
- Form RC249, Post-Death Decline in the Value of a RRIF, an Unmatured RRSP and Post-Death Increase or Decline in the Value of an PRPP
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