Do I lose all my RRSP`s if I go personally bankrupt?
Do I lose all my RRSP`s if I go personally bankrupt?
Posted on Monday, April 14, 2008
posted by Questions @ 8:06 am
1 Expert Comment:
At April 17, 2008 |
7:38 am
, Barton Goth GCO Bankruptcy Trustees Said...
Typically if you file for bankruptcy you need to be prepared to loose any investments of RRSP’s you may have. However, there are 2 exceptions:
1. If your RRSPs are in a segregated fund with an insurance company and your spouse / child / grandchild / parent / grand parent is named as beneficiary
2. If your RRSP’s are the result of a the conversion of a pension plan and are now locke in until you hit a specified age requirement (i.e. 65).
When considering a bankruptcy I recommend that you have a personal bankruptcy trustee review your RRSP documentation prior to filing bankruptcy to confirm that your RRSPs are exempt.
As well it is important to note that this is under the current legislation. We are in the midst of legislative change and as soon as the legislation is proclaimed there are new rules that will exempt all RRSP’s regardless of source or named beneficiary, except for contribuitons made in the last 12 months.
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