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A successor holder can be named to a Tax-Free Savings Account— either a spouse or common-law partner.

Upon the death of the TFSA holder, the TFSA passes to the successor holder designate who becomes the new account holder. Generally, the successor holders’ contribution room will not be affected by this process. There may be tax implications for the successor holder of a TFSA. If a successor holder is not named, the probate process shall govern the settlement of the account including any tax implications.

To learn about TFSAs and retirement planning visit GetSmarterAboutMoney.ca. Speak with a registered financial representative or tax professional for advice to fit your personal financial goals and situation.