Was the surviving spouse the designated beneficiary with right of survivorship? If not the RIF might have been cashed out.cheapmeister wrote: ↑ Relative had spouse die recently and inherited their riff/liff funds. Now the bank sent tax receipts for the full amounts inherited. The money is still in the rrif/liff and being withdrawn monthly. Now is this the gov't double dipping on taxation? They already pay tax on the money being withdrawn monthly, and now again to pay tax on the entire amounts? What can be done about this?
The rif and lif are still there and the funds are being withdrawn monthly as they always have been. The bank transferred ownership to the spouse since the deceased had a will naming the spouse to take inheritence. Basically the bank just changed the ownership from one spouse to the other. The funds were not cashed out.
This link should help: https://www.canada.ca/en/revenue-agency ... itant.htmlcheapmeister wrote: ↑ The rif and lif are still there and the funds are being withdrawn monthly as they always have been. The bank transferred ownership to the spouse since the deceased had a will naming the spouse to take inheritence. Basically the bank just changed the ownership from one spouse to the other. The funds were not cashed out.
Is the tax receipts for the full amounts inherited a T4RIF? If yes, what box on the T4RIF is the amt in ? Box 16 & 24?cheapmeister wrote: ↑ Relative had spouse die recently and inherited their riff/liff funds. Now the bank sent tax receipts for the full amounts inherited. The money is still in the rrif/liff and being withdrawn monthly. Now is this the gov't double dipping on taxation? They already pay tax on the money being withdrawn monthly, and now again to pay tax on the entire amounts? What can be done about this?
Yes, they are T4RIF slips. Box 16 and 24 have the same amounts. So I guess these slips are to show transfer, not pay tax on them.ml88888888 wrote: ↑ Is the tax receipts for the full amounts inherited a T4RIF? If yes, what box on the T4RIF is the amt in ? Box 16 & 24?
Spouse or common-law partner is designated as beneficiary of the RRIF – If, by the end of the
year following the year of death of the annuitant, all of the property the RRIF held is paid to you (as
specified in the RRIF contract) as the deceased annuitant’s spouse or common-law partner, and the
eligible amount is directly transferred to your RRSP, claim a deduction equal to the transferred
amount on line 20800 of your Income Tax and Benefit Return. If the amount is directly transferred to
your RRIF or directly transferred to an issuer to buy an eligible annuity, claim a deduction equal to the
transferred amount on line 23200 of your Income Tax and Benefit Return. The eligible amount is
shown in box 24 of your T4RIF slip, and this is the maximum amount that can be directly transferred.
https://www.canada.ca/content/dam/cra-a ... 40-20e.pdf
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