The TFSA Box Most Couples Get Wrong With No Way Back

TFSA inheritance Canada: successor holder vs designated beneficiary Free TFSA contribution-room Tracker: https://hudsonbayfinance.ca/go/yt Paid links: Wealthsimple (referral) + Amazon (affiliate) - my opinions. 👉 Wealthsimple - Update your TFSA beneficiary form from your phone in under 10 minutes + $25 bonus when you deposit $100: https://wealthsimple.com/invite/HTN0SP Books that shaped this video (paid links): 📖 Reboot Your Portfolio by Dan Bortolotti (Canadian Couch Potato's nine-step framework for setting up your TFSA and RRSP properly): https://amzn.to/4jpZPLF 📖 Millionaire Teacher by Andrew Hallam (Canadian-authored introduction to TFSA, RRSP, and ETF basics for beginners): https://amzn.to/4s9FPRb 00:00 - TFSA successor holder vs designated beneficiary at death 01:38 - Successor holder vs designated beneficiary TFSA Canada 03:37 - TFSA successor holder spouse contribution room 05:30 - TFSA RC240 form 30 day exempt contribution deadline 07:12 - TFSA Quebec successor holder will rule 07:46 - TFSA inheritance tax example $200,000 Ontario 09:00 - T4A slip box 134 TFSA post-death growth 09:51 - How to update TFSA beneficiary form 11:04 - TFSA vs RRSP contribution room comparison For the financial decisions you can't undo, the mindset that matters most (paid link): 📚 Failing Forward by John C. Maxwell (turning the unrecoverable into the framework for the next decision): https://amzn.to/47RjmA7 Canadian TFSA estate planning hinges on one decision made at account opening: successor holder or designated beneficiary. When a TFSA holder dies in Canada, the surviving spouse's outcome depends entirely on which designation was ticked on the original contract. Successor holder transfers ownership of the TFSA itself to a spouse or common-law partner; the tax shelter continues uninterrupted, and no contribution room is used on the spouse's side. Designated beneficiary transfers only the cash value as of the date of death; the shelter ends, and any post-death growth becomes taxable income reported on a T4A slip, Box 134. A surviving spouse can still preserve the inherited balance by filing CRA Form RC240 within 30 days of moving the money into her own TFSA, rolling per contribution and not tied to the April 30 tax filing date. The exempt period runs from the date of death through December 31 of the calendar year that follows. Quebec follows a different rule: a successor holder cannot be named on the TFSA contract itself in most cases, so the designation lives in the will, typically drafted by a notary. This video walks through one Ontario household with a $200,000 TFSA balance, showing the actual tax gap between successor holder and designated beneficiary outcomes for 2026. Key numbers: TFSA successor holder eligibility: spouse or common-law partner only (CRA, 2026) RC240 filing deadline after contribution: 30 days, rolling per contribution Exempt period: date of death through December 31 of the following calendar year Example balance in video: $200,000 (Ontario household, 2026) Post-death growth example: roughly $3,000 to $4,000 of taxable income on the beneficiary path Estimated Ontario tax gap between paths: about $1,500 (2026, varies by marginal rate) GIS clawback rate on T4A income inclusion: 50 cents per dollar T4A box for taxable TFSA amount: Box 134 Resources: CRA Form RC240 (download the form your surviving spouse must file within 30 days of moving the money): https://www.canada.ca/en/revenue-agen... CRA TFSA Guide for Individuals (full rules on successor holder, designated beneficiary, exempt contributions, and the exempt period): https://www.canada.ca/en/revenue-agen... I am not a registered financial advisor or tax professional. This video is general financial education broadcast to a wide audience. It is not tailored to your individual financial situation, needs, or objectives. Consult a qualified professional before making investment or tax decisions. Not tax advice. As an Amazon Associate I earn from qualifying purchases. Contains affiliate links. Purchases through these links earn commission at no extra cost to you. Next → The contribution-side rule most Canadians get wrong while they're alive, where TFSA and RRSP treat your dollars completely differently. Subscribe so you catch it. 🎬    • TFSA vs RRSP: The Banker’s Secret Mistake   #TFSA #SuccessorHolder #EstatePlanningCanada #RC240 #HudsonBayFinance