rrif taxation

April 9th, 2014 by Questions

I am a power of attorney and have recently received information that he may be responsible for a tax debt incurred from a rrif payout from his deceased spouse.

He received the funds as a payout but did not pay tax on the amount (approx 220,000)
She died intestate and there was no lawyer involved.
He spent the money, on what, I have no idea and in the 2 years following his spouses death, has suffered a stroke and dementia and now living in a nursing home.

My question is, is he responsible for the rrif taxation? He is on fixed income and there are no funds to pay the large amount of tax owing on her tax bill.

Can I claim bankruptcy for him as power of attorney? Is this Tax in fact his responsibility?

Thank you for your help

Posted from: Ontario


One Response to “rrif taxation”

, Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said:

You may want to talk to a tax expert, as who is responsible for the tax will depend on the details. If he is responsible for the tax, the Power of Attorney could assign him into bankruptcy

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