How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Legal Ease Your Own Question
Legal Ease
Legal Ease, Lawyer
Category: Canada Law
Satisfied Customers: 95935
Experience:  Lawyer
Type Your Canada Law Question Here...
Legal Ease is online now
A new question is answered every 9 seconds

My mom died leaving me and my brother as the beneficiaries,

This answer was rated:

My mom died leaving me and my brother as the beneficiaries, our mom had 180000 in Rrif. It was liquidated and we received 90000 each ,from what I understand the estate must pay the taxes which probably means us or we will get less.Would it be wise for us to buy the max allowed and buy rrsp before the years end to offset paying on the full amount.We live in quebec will this amount be added to my year income,roughly how much tax will one pay on 90000 thanks

Thank you for your question.

Before I begin I want to explain a bit about how the site works.

It may be that I will find that I need to gather further information from you. As well, it's quite possible that you may feel the need to ask me additional questions for further clarification.Please do not worry that you will be charged additionally if I ask you questions or if you need to ask me questions. That is not at all how the site works.

As well, please understand that as a careful lawyer I will always give you an honest answer even if the answer is sometimes not what you were hoping for.

Finally, as we go through the process please do not feel rushed if I ask you a question. You are always free to take your time to gather more information before you post back. As well, please understand that even after you rate me the post will not lock and you could always come back for further clarification if you think of something a bit later on down the road.

Buying an RRSP has nothing to do with this tax issue.

This is not your tax liability.

The estate has to pay the tax.

If there is no other money in the estate then you do.

But the tax that is payable is based on the calculation of the estate earning the income and not you.

So this does not go into your tax return at all.

Let me know if you need any further clarification.
Customer: replied 3 years ago.

Okay if the estate must pay the taxes we have been issued 90000 each can this money be used, I would think that possibly it would be added to the deceased income and her estate would pay but if we have all her assets wouldn't the cra come after the beneficiaries.

Yes they would.

If the estate cannot pay then the beneficiaries must pay.

But you are paying the estate's taxes and not your own.

You do not declare this as income on your own tax returns.

You declare on your mother's Terminal Return.

Then you two pay the taxes if the estate cannot.
Legal Ease and other Canada Law Specialists are ready to help you

Related Canada Law Questions