Tax-free savings accounts, which were first introduced in 2009 and still in existence with relatively high contribution limits, provide for the smooth passage of assets upon death. This process, when done properly, also helps individuals avoid probate court.

Individuals can pass on to a successor holder (if the other person is a spouse or common law partner, or a beneficiary. The success holder path is easier to follow, since the funds in question would simply slide over with no change in status. With a beneficiary, however, the money deregisters at the time of death and is then transferred into a non-sheltered account in that individual’s name. 

If an account has a designated successor holder and beneficiary, the former situation precedes the latter. Designations can be changed at any time, and a side feature of the account is that beneficiary names and account details stay private, unlike provisions inside a will.

If you’re curious about tax free savings accounts and other planning vehicles that can assist in putting some money aside, set up an appointment today to come talk to us.