Sentences with phrase «tfsa successor holder»

Not exact matches

The main thing is to ensure you and your partner do the paperwork and name each other a Successor Holder for your respective TFSAs.

Seniors should not confuse the term Beneficiary (familiar because of RRSP and RRIF beneficiary designations) with the key TFSA term, Successor Holder, says Sandy Cardy, a former Senior VP of tax and estate planning for Mackenzie Investments.

If you have a spouse, make sure you name each other the «successor holders» of your TFSAs.

That's because after the accountholder dies, ownership can pass to the successor and the TFSA can continue sheltering income without eating up the successor holder's contribution room.

For registered accounts, Caskey tells clients about the concepts of successor annuitants (RRIFs) and successor holders (TFSAs).

When you die, your spouse, as successor holder, becomes the new owner of your TFSA.

«For example, it is superior to be a successor holder for TFSA for a spouse, and our best advice is that a spouse be named a successor holder rather than a beneficiary of the TFSA,» says Caskey.

Complete this form to designate or change a successor holder and / or beneficiary of your Tax - Free Savings Account (TFSA) assets.

When you open a Tax - Free Savings Account (TFSA), you'll likely be asked whether you wish to specify something called a «successor holder» or whether you want to designate a beneficiary.

Earlier this week I posted about Estate planning with your TFSA — choosing a beneficiary or successor holder.

@Juan — The difference is that the successor holder can take over the account automatically as of the date of death and the money remains tax - sheltered in the TFSA.

Previous post: Estate Planning With Your TFSA — Tax - Free Savings Account — Naming A Beneficiary Or Successor Holder

You can designate a beneficiary or successor holder when you set up your TFSA or any time later on.

Note that if you name both a successor holder and beneficiary on a TFSA, the successor holder will override the beneficiary.

Tip — To pass the TFSA to a spouse or common - law partner, designate them the Successor Holder.

If the Successor Holder has sufficient TFSA contribution room to absorb the contributions, over-contribution penalties (of 1 % per month) will cease.

Cardy points to a TFSA primer prepared by Mackenzie, which says a «Successor Holder» simply continues to hold your TFSA and underlying investments after your death.

Jessie dies with a $ 60,000 TFSA and his wife Jenny was not a Successor Holder, but was beneficiary of the estate, so inherited the TFSA via Jessie's will.

As noted earlier, the optimum thing if you are a spouse or Common - law partner (CLP) is to name each other as Successor Holders to the partner's TFSA, while both are still alive.

The law in the province where you live may allow you to designate a successor holder and / or other beneficiary to your TFSA in the event of your death, by means of a separate designation outside of your will.

If you have designated both a successor holder, and a beneficiary, at your death, the person designated as your successor holder will become the holder of your TFSA except if that person has either a) died before you; or b) is no longer your current spouse or common - law partner at the time of your death.

A successor holder is someone who takes over your TFSA when you die.

On each TFSA you have with HSBC Bank Canada, you can designate a successor holder or a beneficiary or both.

Important: As set out in the language on the form, when you change either your successor holder or beneficiary designation, this will revoke all previous designations on that particular TFSA.

The TFSA continues to grow tax - free in the hands of a successor holder and generally, your surviving spouse will then consolidate the TFSA with their own TFSA for ease of administration.

If you want your TFSA to go to your spouse and you live in a province that allows successor holders, Edmund, it's important to name your spouse as the successor holder, not just the beneficiary.

If your TFSA was established in 2009 when the account was first introduced, you likely didn't appoint a successor holder at that time as the concept did not initially exist.

If your sister - in - law was the TFSA beneficiary or successor holder, you may be able to transfer the TFSA investments «in kind» or as is from one TFSA to another, Rosemary, but that will be up to the transferring and receiving financial institutions.

Your brother may have appointed your sister - in - law as the «successor holder» for his TFSA, which is slightly different from appointing her as the «beneficiary.»

If your brother did not name her as the beneficiary or successor holder for his TFSA, the account would be payable to his estate.