Is there any tax obligation for paid out RRSP for the deceased person who filed for bankruptcy? RRSP is paid in 2017, the owner died in 2016.


My understanding is RRSP's are protected from bankruptcy EXCEPT for any contributions made 365 days prior to claiming bankruptcy. So, if the spouse is the beneficiary of the RRSP, she would report 100% on HER return with a corresponding deduction on line 208. The RRSP would NOT be reported on the terminal return of the deceased. 

If the deceased person does not have a spouse, the RRSP is paid DIRECTLY to the named beneficiaries with NO tax withheld at source. The RRSP is then reported on the terminal income tax return of the deceased and the estate is liable for the tax. If the estate is bankrupt, CRA has the authority to "reach threw the estate" and tax the beneficiaries for this amount owing. 

Hope this helps. 

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