# Deceased person - RRIF payments still being made



## yyzvoyageur (Apr 10, 2009)

A recently deceased relative had a RRIF from which he was receiving monthly payments. His wife is the beneficiary on the RRIF. The problem is that, due to an oversight, his RRIF payments were still made for three months after his death (direct deposit into a joint bank account). I'm wondering what problems we're going to encounter because of that. Certainly we won't be reporting as income on his final tax return those RRIF payments made after his death? Can his wife claim this as her income? Does it have to be paid back in some manner? Is there a penalty involved here?


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## Charlie (May 20, 2011)

It's his wife's income. There's no penalty. And since it's a joint account the RRIF holder may even be able to get the slips right if you tell them about it. The situation is not unusual.


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## OhGreatGuru (May 24, 2009)

As his spouse, she is a qualified successor annuitant for the RRIF. Ownership passes to her without any tax implications. So the income is hers. She (or someone) should check with the financial instituion to see if their paperwork is in order. The fact that she is not clear on why these payments are being made suggests they have not been in contact with her to explain her options on inheriting the RRIF - or perhaps they did so verbally and it just went by her in her time of grief. 

Also, if her age is diffent than her husband's, the miniumum withdrawal rates will be different (unless her husbsand had already exercised the option of setting withdrawal rates on her age rather than his.).


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## Karen (Jul 24, 2010)

OhGreatGuru said:


> ...Also, if her age is diffent than her husband's, the miniumum withdrawal rates will be different (unless her husbsand had already exercised the option of setting withdrawal rates on her age rather than his.).


Another reason that her age might make a difference is that, if she's under 71, she can convert her late husband's RRIF back to an RRSP if she chooses to.


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## OhGreatGuru (May 24, 2009)

Karen said:


> Another reason that her age might make a difference is that, if she's under 71, she can convert her late husband's RRIF back to an RRSP if she chooses to.


That is one of the options that should have been explained to her if she is eligible.


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## yyzvoyageur (Apr 10, 2009)

Thanks. It sounds pretty straightforward. We've known the basics of what had to be done to put things in her name, but the bank hasn't processed the paperwork yet. My concern was that the bank will issue a tax slip in his name covering the payments subsequent to his death. I suppose that still may happen, but I'll figure that out at tax time.


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## OhGreatGuru (May 24, 2009)

yyzvoyageur said:


> Thanks. It sounds pretty straightforward. We've known the basics of what had to be done to put things in her name, but the bank hasn't processed the paperwork yet. My concern was that the bank will issue a tax slip in his name covering the payments subsequent to his death. I suppose that still may happen, but I'll figure that out at tax time.


Based on my recent experiences with the estate dept of one of the large banks, odds are they will issue only one T3/T5. You will likely have to allocate the income yourself, and provide a note about it. But you may get lucky - since they have to change the annuitant for the RRIF maybe the system will generate a different T3/5.


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