Death of a TFSA holder
After the holder of a TFSA dies, possible tax implications may vary somewhat 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.
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