rrsp safe who decides??

July 19th, 2006 by Questions

My mom has been ill for several years, the only asset she has is a rrsp (about 70k) which has been invested in an insurance company for over 15 years, i am the beneficary. Everything i have read says that they seem to be \”creditor proof\”. I went to see a trustee who says, i should call the investment company to confirm this. I call the insurance company and they said that they can not rule or make that decision (creditor proof) and tell me that a judge makes this decision. could you clarify this? Do all bankruptcies go to court? Cashing in her rrsps after taxes is still not enough to wipe out the debt and since she was self-employed she has no other income…Would hiring a lawyer help?


One Response to “rrsp safe who decides??”

, Barton Goth, GCO Inc. Bankruptcy Trustees said:

This is a decision that is made by the court system. The reason that the various parties are not willing to provide a hard and fast answer is that while the legislation is clear, not all parties understand the legislation (i.e. insurance companies) and this can create a great deal of confusion. If you can obtain copies of your policy documents from the insurance company, your trustee should be able to review these and confirm whether or not the funds would qualify as exempt.

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