Death of a TFSA holder

After the holder of a TFSA dies, possible tax implications may vary depending on one or more of the following factors:

• the type of TFSA;
• the type of beneficiary(ies);
• whether any income was earned after the date of death; and
• how long, after the date of death, amounts are distributed to beneficiaries.

Depending on the factors that apply, the following can be affected:

• whether the deceased's TFSA continues to exist or is considered to have ceased;
• how income earned after the date of death may be reported and taxed; and
• whether a beneficiary can contribute amounts received to their own TFSA, within certain limits, and whether such a contribution would affect their unused TFSA contribution room.

Services and information

• Types of beneficiaries
  Survivor designated as a successor holder, designated beneficiaries
• Successor holder
  Rules for a survivor to be named as a successor holder
• Designated beneficiaries
  Explains whether a survivor, former spouse or common-law partner or child can be a designated beneficiary and rules for deposit or annuity contracts, rules for arrangements in trust, and rules for management fees
• Designation of an exempt contribution by a survivor
  When a contribution can be designated as an exempt contribution
• Donation to a qualified donee
  Rules regarding donations of funds in a TFSA after the death of the holder

Date modified:

2016-01-14