Page 119 - A Canuck's Guide to Financial Literacy 2020

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The request for credit splitting could be made by either spouse or their lawyers. In regards
to time limits, for common law relationship, an application should be filed within 4 years of
living apart. There is no time limit for spouses.

Canada Pension Plan Survivor Benefits

Canada Pension Plan provides survivor benefits to the estate of a deceased qualified CPP
contributor. There are three types of CPP Survivor Benefits. CPP survivor's benefit include:

• Death Benefit
• Survivor's Pension
• Orphan's Benefit

To receive survivor's benefits, the deceased spouse must have made enough contributions
to the CPP. Each benefit is discussed below.

Canada Pension Plan Death Benefit

Canada Pension Plan provides a lump sum death benefit to help families of the deceased
contributor with funeral expenses and the hardship that they might be facing. This benefit
can be used for any purpose. Most Canadians are not aware of this benefit.

Eligibility

The contributor must have made contributions to the CPP for at least:

• one-third of the calendar years in their contributory period for the base CPP, but no
less than 3 calendar years; or
• 10 calendar years.

How much is the benefit?

• As of January 1, 2019, the amount of the death benefit for all eligible contributors is
a flat rate of $2,500.
• Formal application with the death certificate should be filed.

The death benefit is payable to the estate of the deceased. In most cases, the benefit is
paid directly to the surviving spouse or common-law partner.

How to Apply?

Formal application should be filed. The form is called Application for a Canadian Pension
Plan Death Benefit. Make sure you include certified true copies or originals regarding the
required documentation. Mail the application to the closest Service Canada Centre.