CRA stated that where an estate receives a lump sum from a pension plan of the deceased beyond the 36-month period in which it could qualify as a graduated rate estate (“GRE”), CRA would have no discretion to extend the 36-month period.
The executor was unable to distribute the income to the sole beneficiary before the end of the year of receipt. CRA indicated that although nothing had been paid to the beneficiary in the year, if the executor determined that the beneficiary was entitled to enforce payment of the lump-sum benefit, that amount would be required to be included in the beneficiary’s income, pursuant to ss. 104(13) and (24).