----- Original Message -----
Sent: Sunday, December 08, 2002 9:03 AM
Subject: [CEN-TAPEDE] RSP
Sent: Saturday, December 07, 2002 4:11 PM
Subject: RSP
Hello David
Here is one for you.
I am a Canadian resident in the US.
I had a pension earned in Canada the value of which was subsequently rolled
into a locked in RSP account with TD Waterhouse.
How "creditor proof" is this account under Canadian law???
adm
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Reply::
Your locked in RRSP is bulletproof as far as Canadian
Creditors are concerned.
If it was still a pension with your prior employer, it
would be bulletproof.
If it was a life insurance plan or life insurance
segregated fund RRSP it is 99.9% bulletproof.
However, if you just bought a plan at the local bank or
trust comapny or credit union or TD Waterhouse, it would be attachable by your
creditors. It is expected that the law will change on this matter with the
next change to the bankruptcy act.
A very senior Bankruptcy person at the CCRA told me about
three months ago that in his opinion any RRSP that had been contributed to
over the years should be exempt, just as the Company pension plan is exempt.
On the other hand, if you had just put $50,000 into your
RRSP one year before the bankruptcy, it would not be exempt.
Last I heard from you, you were living in Maple Ridge.
It seems that you have moved south and I did not get any of your tax work for
your last year in Canada and your first year in the US. For the record,
I have rarely seen these returns done correctly when a person moves from
Canada to the US.
You should likely send them to us to look at. One
we received today will result in over $4,500 US refund on the US return and
$1,100 Canadian on the Canadian.
Our mailing address is below
david ingram -
www.centa.com
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 913-9133 - Fax (604) 913-9123
cell (604) 657-8451 (10 AM to 10 PM 7 days)
US / CANADA Income Tax and Working Visa Matters
