Sentences with phrase «successor holder»

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

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

You can name different successor holders or beneficiaries to each account.

It's critical that senior couples name their spouse as the TFSA Successor Holder on the TFSA forms while both spouses are still alive.

Note that only spouses or Common - law partners can be named Successor Holders.

By law, only your current spouse or common - law partner, as recognized by the Income Tax Act (Canada), can be a valid successor holder.

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.

For Quebec residents, neither TFSA successor holder nor beneficiary designations are allowed.

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

If you want your spouse or common - law partner to have access to your account after your death, he or she should be designated as the «successor holder.»

In fact, you can name both a successor holder and a beneficiary — for example, a man could name his wife as a successor holder and his child as beneficiary, meaning his wife would get the money after his death.

Spouse / CommonLaw Partner Successor Holder: The Holder may designate his / her surviving Spouse / CommonLaw Partner as the successor holder of the Plan after the Holder's death.

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.

So, in order to make sure that the TFSA passes to your spouse as simply and as tax - effectively as possible, the successor holder designation is the way to go.

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

Note that only a spouse can be your successor holder: if you want a child or other heir to receive your assets, they must be named as the beneficiary.

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).

«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.

Only spouses or Common Law partners can be named a successor holder.

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.

Complete this form to designate or change a successor holder and / or beneficiary of your Retirement Income Fund (RIF) assets.

A successor holder must be your spouse or common - law partner, as defined by the Income Tax Act.

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

If you and the successor holder die at the same time, the beneficiary will get the money.

Update — My wife phoned ING, and we do not have any successor holder or beneficiary named on our accounts.

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.

how does it work if the successor holder / beneficiary is a minor upon my death?

You can only designate a spouse or common - law partner as the successor holder.

Caroline — The successor holder has to be a spouse.

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

If you were an early TFSAer, it's very possible that your financial institution didn't have the successor holder or beneficiary information on the account setup form.

The successor holder and beneficiary are provincially legislated.

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.

Tip — Name a beneficiary, even if you have already named a 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.

But what of the trickier situation when death occurs without a Successor Holder having been designated?

Remember that in the absence of a Successor Holder, income earned in a TFSA is subject to tax, normally by the recipient of the TFSA, and regardless of whether or not a spouse or common law partner is a beneficiary.

The Income Tax Act says that once a Successor Holder has been named, «Your TFSA will not terminate on your death: your successor simply replaces you as plan holder, and the plan will continue with all rights passing to the Successor.»