If Alejandro names Mercedes as the successor annuitant of his spousal RRIF, and he subsequently dies in
Question:
If Alejandro names Mercedes as the successor annuitant of his spousal RRIF, and he subsequently dies in 2028, what are the tax consequences?
Successor annuitant is (more or less) the same thing as a “beneficiary”. So if Alejandro arranges to do this for Mercedes, why would he do it and what are the financial benefits, and what are the tax consequences if Alejandro dies?
How much of the $75,000 long service payment, if any, can Mercedes shelter from tax?
Some companies will offer senior management who have worked for a company as a loyal employee for many years a special, lump-sum, payment when they retire? If Mercedes receives a payment like this, what are the tax issues (if any) for Mercedes and the company?
What are the implications, if any, of Mercedes transferring the eligible portion of the retiring allowance discussed in question #4 above to a spousal RRSP where she is the contributor?
If Mercedes receives this payment from her company, what are the rules and tax issues if she wants to transfer all, or some, of this payment into the spousal RRSP in Alejandro’s name?
Assume the maximum annual pension entitlement for a defined benefit pension plan has not changed over the last nine (9) years and is still $2,697 per year of service.
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young