TFSAs (PG. 78)

Question 1

TFSA

Answer 1

A savings vehicle where the funds within the account accumulate tax-free, and withdrawal’s during the account holders life, or after death, are also tax free

Note: Income tax implications may arise if the TFSA remains open and income is earned inside the TFSA after the date of death (after the date of death, the tFSA loses its tax-free status)

Question 2

DESIGNATED BENEFICIARY

Answer 2

A beneficiary named on a TFSA

Question 3

SUCCESSOR HOLDER

Answer 3

The TFSA account holder;s spouse or common-law partner