The estate of the deceased distributes $100,000 from his RRSP (which had not matured at the time of his death) in settlement of the claim against him of his separated wife.
CRA noted that s. 248(23.1)(a) would have the effect of deeming such transfer to her to occur as a consequence of his death, but would not also satisfy the requirement in s. 146(8.1) that she be a beneficiary of Mr. X's estate. Consequently, as she received the RRSP proceeds from the estate as a creditor rather than a beneficiary, the amount paid to her would not qualify as a refund of premiums that could be rolled over into her RRSP.
CRA also noted that this contrasted with the result that would have obtained if the deceased taxpayer had instead been the annuitant of a RRIF (see 2017-0707801C6), and had advised Finance of this inconsistency.
Neal Armstrong. Summaries of 7 October 2022 APFF Federal Roundtable, Q.13 under s. 248(23.1)(a).