See the Oscar nominated movie "RRSPs, RRIFs and Dying&q

wilmina · Post by **wilmina** » Fri Feb 23, 2007 9:34 am

Husband and I living in US and plan to retire here. Each have RRSPs that will eventually roll into RRIFs. Kids living in US too.

Any special tax rules or thoughts on how to plan for inheritance of these retirement funds by children on our survivor's death?

(Is this a morbid subject or what?)

Thanx, Wil

nelsona · Post by **nelsona** » Fri Feb 23, 2007 10:53 am

Yes, there are.

wilmina · Post by **wilmina** » Fri Feb 23, 2007 2:40 pm

nelsona:

You're making me lick my lips in anticipation!!!!

Might you give further info or a web site or source that I can look for?

Wil

Bill_S · Post by **Bill_S** » Fri Feb 23, 2007 6:18 pm

Estate planning is complex, and highly dependent upon individual circumstances. I wouldn't be relying on message boards or web sites for that kind of information, as a mistake or poor choice could have costly consequences. Your best bet is to see a lawyer in your state who specializes in estate planning. In addition to planning how to handle RRSPs and the like, it would be a perfect opportunity to update wills, powers of attorney, etc.

wilmina · Post by **wilmina** » Sat Feb 24, 2007 10:38 am

I agree 100%

I use sites like these to get new ideas, get basic information, aim me in the right direction, and the occasional - I never knew that!

The other thing I get from these sites is that taxes and legal issues are often complex, or subject to interpretation. How many times have you read 'I got some professional advise and they never told me about that!'

In the long run, regardless of the advise you get, you yourself are responsible for 'getting it right'. Mistakes can be not only expense - but can get you into legal trouble! And the number one take home message in all of this is - you get what you pay for!!!!!!!!

Having said all of that - any comments from anyone on my initial question?

Thanx, Wil

Carson · Post by **Carson** » Wed Feb 28, 2007 5:00 pm

Nothing special (unlike US IRA plans) as the remaining RRIF balance will become taxable to the last to die. A 25% Canadian withholding tax will apply and may be used as a credit against US Federal estate tax (if any).

Therefore, regular US estate planning optimization will apply. See a pro.

wilmina · Post by **wilmina** » Thu Mar 01, 2007 12:20 am

I thouht that the Cdn Gov't withholds only 15% on the RRIF distributions (as long as they are the minimum withdrawl amount)?

Carson · Post by **Carson** » Thu Mar 01, 2007 10:23 am

It's 25% on the excess after twice the minimum annual withdrawal (it's actually a little more complicated than that). I quoted the maximum rate.

wilmina · Post by **wilmina** » Fri Mar 02, 2007 2:03 pm

Thanx Carson

Can you give me a web site to look at the 'complicated' part of it?

Carson · Post by **Carson** » Fri Mar 02, 2007 3:09 pm

Sorry, I only have professional sources, but Google is your friend. :-)

I believe it's 15% on the greater of 10% of the RRIF balance at the beginning of the year or twice the minimum withdrawal required based on age. Any withhdrawals above that are at 25%.

Something like that.