Group of Five trust fund transfer from RRSP

[splendid2019]

Hi folks,

Can I liquidate and transfer funds from RRSP into the trust account? I am using the first time home buyer's program to withdraw funds but I will be using only a portion of it for the property purchase. the remaining will sit in the trust fund or a savings account in case any repair needed. Can I withhold this fund as part of trust account. Does it satisfy the requirement of where the funds come from? Thank you very much for enlightening me on this matter.

 

[Naturgrl]

You can’t use funds for the RRSP Home Buyer’s program for a trust fund. For the home buyer’s program, you need to show how you will use all the funds. That is not the purpose of the program and you would be in breach of the eligibility requirements.

 

[splendid2019]

Fair enough, thanks. So i suppose I will pull out the portion I want to keep in the trust account separate as taxable income

 

[canuck78]

Fair enough, thanks. So i suppose I will pull out the portion I want to keep in the trust account separate as taxable income

Would be consulting with a lawyer or others who specialize in private sponsorship but I would imagine there is likely to be concerns if the sources of funds for the private sponsorship came from RRSPs that you withdrew. Private sponsorship should involve extra funds and should not involve taking out money that is locked in and needed for your retirement.