Dying in US with RRSP

kjtpptt · Post by **kjtpptt** » Thu Sep 14, 2017 10:51 am

Hi,

If I die as a US resident with an RRSP balance, the balance will get paid out (about 100K) with 25% withholding from Canada. I'm fine with that.

The estate won't need to file a 706 form because I won't be worth more than 5.5 million upon death.

Is the RRSP payout considered income for US purposes to the estate, thereby requiring a 1041?

Thanks!

nelsona · Post by **nelsona** » Thu Sep 14, 2017 1:47 pm

I believe your statements are correct. the only RRSP-related income the estate might have is income generated by the RRSP between death and disbursement.

Of course, if any of the beneficiaries of the estate are non-residents of US, 1041 must be filed in any event.

HOWEVER, the RRSP is considered in Canada to be collapsed the day of death (unless rolled over to spouse), so it needs to be reported (gross and taxable portions) in the 1040 for the deceased.

kjtpptt · Post by **kjtpptt** » Thu Sep 14, 2017 2:30 pm

Forgot about the non-resident beneficiaries....

Thanks for the response. Good comments.