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Published on: 12/19/2006
Last Visited: 4/12/2007
Gert and David are married.In 1999, they each withdrew $20,000 from their respective RRSPs to participate in the HBP.The repayment period for both Gert and David is from 2001 to 2015.
On December 7, 2005, Gert dies.At that point, she still had $12,000 of her total withdrawal left to repay.She had not made her repayment for 2005.
David, who is the legal representative of the estate, attaches a letter to Gert's final return stating that he elects to repay her $12,000 HBP balance to his RRSPs.As a result of making the election, the unpaid balance of $12,000 does not have to be included in Gert's income for 2005 and a repayment for Gert for the year of death does not have to be made.
David had made his repayment for 2005.His balance to be repaid is $10,000.Gert's unpaid balance of $12,000 is added to David's $10,000.He will now have an HBP balance of $22,000.Therefore, his annual repayment for the next 10 years (2006 to 2015, inclusive), will be $2,200, calculated as follows: ($10,000 + $12,000) ÷ 10 years.
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David Shields Mortgage Consultant
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