Peter Enns, a tax debtor, designated his wife, Marlene, as the sole beneficiary of his RRSP. Peter died without paying his tax debt, and so the CRA assessed Marlene under section 160 on the basis that she was Peter’s “spouse” after his death. The Federal Court of Appeal held that Marlene was no longer Peter’s “spouse” after his death, and so section 160 did not apply and the assessment should be vacated. This was so even though, if the RRSP had passed through Peter’s estate, it would have been available to satisfy his tax debt:
[22] It is an important aspect of this appeal that the RRSP was transferred directly to Marlene Enns and that it did not pass through Peter Enns’ estate. Whether an RRSP passes directly to a designated beneficiary (and does not pass through the estate of the deceased) is a question of law and, in particular, of the law of the appropriate province. If the RRSP were part of Peter Enns’ estate, the RRSP (together with whatever other assets were part of his estate) would have been available to satisfy Peter Enns’ debts (including his tax debt).
Enns v R, 2025 FCA 14, rev’g 2023 TCC 28
