Canadian Tax Free Savings Account Tip

[PeppermintPatty]

I’m not sure if this loophole is available to the United States but it’s worth looking into.
My husband discovered this today and suggested that I pass this info on to help others .

Any Canadian who is married / common law included, that has a tax free savings account- that would be one tax free savings account for each of you.

If you add ‘beneficiary’ then the account automatically closes when your spouse’ passes away but if you name your spouse ‘successor’ verses a beneficiary then your tax free account can stay open tax free leaving the survivor with two tax free savings account. One that your spouse can take money from and one where they can put money into.

 

[Jules]

Interesting. It wouldn’t work for us, though our children might want to use this. They’re in their 40s/50s and need to start thinking along these lines.

 

[MrPants]

I’m not sure if this loophole is available to the United States but it’s worth looking into.
My husband discovered this today and suggested that I pass this info on to help others .

Any Canadian who is married / common law included, that has a tax free savings account- that would be one tax free savings account for each of you.

If you add ‘beneficiary’ then the account automatically closes when your spouse’ passes away but if you name your spouse ‘successor’ verses a beneficiary then your tax free account can stay open tax free leaving the survivor with two tax free savings account. One that your spouse can take money from and one where they can put money into.

That's interesting. I didn't know that. Means the survivour can save twice as much per year under the tax-free income umbrella. The current limit per year is $7,000/account, plus any carry forward amount from previous years where you didn't contribute the max. allowable.

Tax free income is the BEST income!