Under the terms of his will, Mr. A left all of his property to a spousal trust for his wife, Ms. A. After Mr. A's death in 2006, the trustee made encroachments of capital to Ms. A in an amount equaling the FMV of Mr. A's unmatured RRSP immediately before his death of $100,000. Thereafter, the executor of the estate and Ms. A jointly elected under s. 146(8.1) in the amount of $100,000. Before the end of 2006 Ms. A contributed $100,000 to her RRSP.
Regarding the availability of the s. 146(8.1) election, CRA stated:
[S]ubsection 146(8.1) would apply to an individual who is "beneficially interested", within the meaning of subsection 248(25), in the estate of a deceased RRSP annuitant who is not a direct beneficiary of the estate, as [here], where Ms. A has only an indirect interest in Mr. A's estate by virtue of the fact that she is a beneficiary of a trust that is itself a beneficiary of the estate.