By TN CPA Team on Tuesday, 05 November 2024
Category: Income Tax

What Happens on the Death of a TFSA Holder?

When a Tax-Free Savings Account (TFSA) holder passes away, the handling of the account depends on whether the account has a named successor holder or a designated beneficiary. Here’s a breakdown of the main scenarios:

In all cases, the date of death determines the tax treatment, with any earnings generated after that date generally subject to tax unless a spouse is the successor holder.

Provincial legislation must also be taken into consideration as probate laws can enter into the situation based on the jurisdiction.

Contact our office to make sure your TFSA is in order.

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