Monsieur had predeceased Madame, aged 58, three months before her purchase of a condo in July 2019, using funds withdrawn from her RRSP. Monsieur had been the sole owner of their home until his death, with the home then held by the estate before its sale. Is Madam eligible for home buyer plan (HBP) treatment?
CRA found that, given that Monsieur was no longer considered to be her spouse at the time of her withdrawal from her RRSP, she was eligible for HBP treatment provided the other conditions were satisfied, stating:
[S]ince Madame does not have a spouse or common-law partner at the time of the withdrawal of an amount from her RRSP, being in July 2019, the condition set out in paragraph (f) of the definition "regular eligible amount" in subsection 146.01(1) would not be applicable. Furthermore, since she was not the owner-occupant of a home during the period beginning on January 1, 2015 and ending 31 days before the date of the withdrawal in July 2019, we are of the view that the condition in paragraph (e) of the definition "regular eligible amount" in subsection 146.01(1) is satisfied.
Madame also would have been entitled under the HBP rules to use her RRSP funds on an acquisition of the home of her deceased husband from the estate, provided that there was an agreement in writing for its acquisition.