(a) Where an unmatured RRSP is the subject of a particular legacy to the deceased annuitant's spouse and the RRSP proceeds are distributed by the RRSP issuer directly to the surviving spouse, does the CRA require Form T2019 to be filed?
(b) In a Quebec context, where the executor is directed by will (or the laws of intestacy) to pay the proceeds of a deceased annuitant's unmatured RRSP to the annuitant’s Spouse pursuant to a legacy by universal title, a universal legacy, a legacy by particular title (or pursuant to intestate succession), if the RRSP proceeds were, at the request of the deceased annuitant's executor, to be delivered by the RRSP issuer directly to the surviving Spouse (without first passing through an account in the name of the estate), would CRA be open to providing administrative relief so that the payment could qualify as a "refund of premiums" without requiring the filing of Form T2019?
In answering “yes” and “no” to these questions, CRA stated:
…(a)…
The joint election provided for in subsection 146(8.1) is required in all cases where the Spouse is entitled to the RRSP proceeds, not by virtue of a valid beneficiary designation, but rather as legatee or heir of the deceased annuitant, the RRSP proceeds then forming part of the deceased annuitant's estate. The joint election is therefore required even where the unmatured RRSP is the subject of a particular legacy to the Spouse under the deceased annuitant's will.
Since the executor exercises the seisin of the legatee by particular title at the formation of the estate, in such a case, the amount paid under the deceased annuitant's RRSP is part of the annuitant’s estate, with the result that such an amount would not qualify as a "refund of premiums" within the meaning of subsection 146(1), even though the proceeds of the RRSP are paid by the issuer of the RRSP directly to the surviving spouse in accordance with the instructions of the executor. … Thus, as specified in subsection 146(8.1), the executor and the Spouse will have to file Form T2019 jointly if they wish to designate the amounts that the estate received (or, as the case may be, is considered to have received) from the deceased annuitant's RRSP as a refund of premiums received by the Spouse.
…(b)…
Since in Quebec a beneficiary designation is only possible in limited circumstances, the T4079 Guide provides an administrative exception for this administrative relief that is only applicable in Quebec. Under this exception, if the provisions of the will clearly identify the beneficiary of the estate as the Spouse and the other conditions for administrative relief are satisfied, the T4RSP slip can be issued in the name of the Spouse as if the Spouse had been the beneficiary of the RRSP. The administrative relief for filing the T4RSP slip does not apply where the RRSP proceeds are paid to the Spouse rather than being transferred directly to an RRSP or RRIF under which the Spouse is the annuitant, or are used by the issuer to buy an eligible annuity for the Spouse. Consequently, the administrative exception applicable only in Quebec has no application in such circumstances.