An individual, who made an excess RRSP contribution in 2015, dies in 2016. Where the time periods in s. 146(8.2) are met, can the executor complete the applicable forms (especially Form T746) in order that the deceased’s terminal return can benefit from the s. 146(8.2) deduction? CRA first indicated that s.146(8.2) requires inter alia that “a payment from an RRSP in respect of undeducted premiums of the taxpayer, be received by the taxpayer in the year,” but then stated:
[T]he CRA generally accepts that an amount deemed to be received by a deceased annuitant under subsection 146(8.8) and included in the annuitant’s income for the year of death under subsection 146(8) and paragraph 56(1)(h) should be treated as a payment received by the annuitant for the purposes of subsection 146(8.2). Thus, to the extent that all other conditions of subsection 146(8.2) are satisfied, the deduction provided under that subsection may be claimed in the deceased annuitant’s terminal return.
Respecting Form T746, it does not cover the situation where the annuitant has died. The executor of a deceased annuitant's estate … should simply indicate the amount claimed in line 232 of the terminal return of the deceased annuitant and use the space to the left of the line to indicate that it is a deduction for the refund of unused RRSP contributions.