Has the position in 2002-0141355 - that an RRSP can be transferred to the RRSP of a surviving non-resident spouse, who can open an RRSP, even if he or she does not have a Social Insurance Number ("SIN") – changed? CRA responded:
Where an amount under an unmatured RRSP of a deceased annuitant is paid to the deceased's legal representative and the surviving spouse is the beneficiary of the estate, we consider that the spouse did not receive the amount in the RRSP due to the annuitant's death and the payment does not constitute a refund of premiums as defined in subsection 146(1). In such a situation, subsection 146(8.1) deems the amount paid to the deceased annuitant's legal representative as being received by the surviving spouse as a benefit that is a refund of premiums, and not by the legal representative, to the extent that the amount would have been a refund of premiums if it had been paid under the plan to the beneficiary spouse of the annuitant's estate and that it is designated jointly by the legal representative and the surviving spouse in prescribed form T2019 filed with the Minister. …
In this particular situation, it is our view that the holding of a SIN by the non-resident spouse is necessary in order to proceed with the registration of an RRSP of which he or she is the annuitant and to file the information return required by virtue of subsection 214.1(1) of the Income Tax Regulations (the "ITR"). Indeed, it is our understanding that a surviving spouse is required, pursuant to subsections 237(1.1) and 214.1(1) ITR, to provide a SIN to the issuer of an RRSP who, in the year of the transfer of a refund of premiums to which paragraph 60(l) applies, must complete an information return in prescribed form with respect to amounts paid as contributions under the plan. …
Our positions relating to the transfer of a RRIF to a non-resident surviving spouse are similar to those … above regarding the transfer of an RRSP at death. …
With respect to the payment made as a result of the death of the spouse of a non-resident who has not been designated as a beneficiary in the RRSP contract but who is the beneficiary of the deceased spouse's estate, we are of the view that the tax-neutral transfer provisions in subparagraphs 212(1)(l)(i) and (ii) generally cannot be applied since the payment should generally be made under the deceased annuitant's RRSP to the legal representative of the deceased annuitant and not directly transferred to an RRSP of which the surviving spouse is the annuitant.
Notwithstanding the foregoing, to the extent permitted by the provisions of the will, we will, however, accept that the sums paid by the issuer, in accordance with the joint instructions of the legal representative of the deceased annuitant and the surviving spouse, directly to the RRSP or RRIF of the surviving spouse or for the purchase of a qualifying annuity of which he or she is the annuitant, cannot be subject to Part XIII tax pursuant to subparagraphs 212(1)(l)(i) and (ii).