8 October 2010 Roundtable, 2010-0371951C6 F - Transfert d'un REER ou d'un FERR au décès -- summary under Subsection 146.3(6)

When Monsieur died in July 2010, his surviving wife (Madame) had a RRIF of $10,000. Monsieur had never had an RRSP or RRIF. Does s. 248(23.1)(b) deem Monsieur to own half of Madame's RRIF, or $5,000, and to have withdrawn that amount immediately prior to his death?

In rejecting this interpretation, CRA stated:

[P]aragraph 248(23.1)(b) only modifies, by a presumption, the time at which the property is transferred, distributed or acquired by the deceased's estate. … [T]hat provision does not have the effect of allowing the annuitant of a RRIF to share with the annuitant’s deceased spouse or common-law partner the tax burden applicable to the annuitant because of the RRIF.

It follows that subsection 146.3(6) cannot be applied as a result of the death of Monsieur since he was not, immediately before his death, the last annuitant under a RRIF.

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