The taxpayer died in December 2020. Her RRSP’s were paid out to the named beneficiaries in January 2021. The beneficiaries requested a 2020 Tslip from RBC planning to enter it in her Date of Death Return. RBC says “No, the Tslips will be issued as income in 2021”. Could this be a Rights & Things return for the deceased or?
The beneficiaries have nothing to do with it as such.
The EXECUTOR hires the CPA to deal with Estate tax matters (in writing), and it is the EXECUTOR who is legally responsible for properly accounting for all tax matters to do with the Estate.
It would be wise to exercise caution and not talk to the beneficiaries about any of this because of Privacy and Confidentiality.
Unless the RRSP proceeds were or will be transferred by December 31, 2021 to the RRSP of a spouse, disabled child (or grand child), or a child (or grand child) who is under 18 the value of the RRSP’s will be included in the income of the deceased individual in the year of death (2020) by virtue of subsection 146(8.8) … regardless of what the RBC CSR might say.
Date of Death RRSP’s are not Rights or Things.
“regardless of what the RBC CSR might say.”
However, unless the RBC CSR broke bank confidentiality rules, they should not have disclosed any Estate matters to an instrument beneficiary, other than what was specified in the instrument.
One presumes they may have given some generic response to a person presenting themselves as the named beneficiary of an instrument.
At this point, there is no information about if anybody has legal authority to do anything on behalf of this estate, including dealing with banks, or hiring the Estate CPA to prepare the accounting of the estate and deceased/estate tax returns…
I’ve always had a “begin at the beginning” type of approach…
The inquiry actually came from the son who is both the Executor and was the recipient of the RRSP transfer. I’ll review Sec 146(8.8) and advise him. Thanks for your responses
Great - no confidentially issue then.
The son then would be wearing two distinct and separate legal “hats”… Usually best to think of those two hats as two different people as you deal with him. (Separate file, separate engagement letter etc).