As part of a background discussion, CRA stated:
One of the conditions for an amount to be considered as a refund of premiums as defined in subsection 146(1) requires that the amount be paid to an individual who was, immediately before the annuitant's death:
• the Spouse if the annuitant died before the maturity of the RRSP,
• a child, or grandchild, of the annuitant, who was financially dependent on the annuitant
(collectively, an "Eligible Recipient".)A second condition requires that the amount be paid out of or under an RRSP as a consequence of the death of the annuitant under the plan. When an individual is named the beneficiary of the RRSP in the RRSP contract, the CRA considers that the amount so received is paid under an RRSP because of the annuitant’s death. If this person is an Eligible Recipient, the amount will be considered as a refund of premiums, without any further formality.