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Changes in Declaration of Trusts 2015

When you sign up for a Registered Savings Plan (RRSP) or a Registered Retirement Income Fund (RRIF) you read and agree to a Declaration of Trust as part of the application process. From time to time amendments are made to these Declarations.

 

As of January 1, 2015 revisions were required to the Declaration of Trust to meet the current requirements of the Income Tax Act. Please click the below link to view the entire document or call 1-866-366-MAXA for a paper copy.

 

RRSP Declaration of Trust 

 

RRIF Declaration of Trust

 

Highlight of RRSP Amendments

To meet the requirement of the Income Tax Act:

·         Wording about non-qualified investments and prohibited investments were added to Clause 1 and Clause 7.

·         The “advantage” wording in Clause 12 was revised.

 

Additional Changes:

·         Clause 8 – Retirement Income: The Trustee’s authority and options have been expanded and clarified in situations where the annuitant of an RRSP fails to provide advance notice of his/her retirement income option prior to plan maturity.

·         Clause 10 – Death: Wording has been clarified.

·         Clause 18 – Resignation or Removal of Trustee: The wording has been expanded, and notably, the notice requirement has been reduced to 30 days from 60 days.

·         Clause 21 – Application for Advice and Direction: This is a new clause, explicitly giving the Trustee the authority to apply to court for advice and direction where there is a dispute over the entitlement of the Plan funds on death or relationship breakdown.

 

Highlight of RRIF Amendments

To meet the requirement of the Income Tax Act:

·         Wording about non-qualified investments and prohibited investments were added to Clause 1 and Clause 5.

·         The “advantage” wording in Clause 12 was revised.

 

Additional Changes:

·         Clause 10 – Death: Wording has been clarified.

·         Clause 17 – Resignation or Removal of Trustee: The wording has been expanded, and notably, the notice requirement has been reduced to 30 days from 60 days.

·         Clause 18 – Application for Advice and Direction: This is a new clause, explicitly giving the Trustee the authority to apply to court for advice and direction where there is a dispute over the entitlement of the Plan funds on death or relationship breakdown.

 


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