|
Estates - RRSPs. Enns v. Canada
In Enns v. Canada (Fed CA, 2025) the Federal Court of Appeal allowed an appeal from the Tax Court, here from a decision "that dismissed Marlene Enns’ appeal from the assessment issued under section 160 of the Income Tax Act" involving a taxpayer's transfer of "property to their spouse or common-law partner for consideration that is less than the fair market value of the property transferred" (improvident transfer).
Here the court notes that in Ontario, RRSPs devolve directly to a spouse and not through their estate:[22] It is an important aspect of this appeal that the RRSP was transferred directly to Marlene Enns and that it did not pass through Peter Enns’ estate. Whether an RRSP passes directly to a designated beneficiary (and does not pass through the estate of the deceased) is a question of law and, in particular, of the law of the appropriate province. If the RRSP were part of Peter Enns’ estate, the RRSP (together with whatever other assets were part of his estate) would have been available to satisfy Peter Enns’ debts (including his tax debt).
[23] The Ontario Court of Appeal confirmed, for Ontario, "“that RRSPs do not form part of the estate of the deceased but instead devolve directly to the designated beneficiary”" (Amherst Crane Rentals Ltd. v. Perring, (2004), 2004 CanLII 18104 (ON CA), 187 O.A.C. 336, at paragraphs 3 and 4). ....
|
