Noront Resources

High-grade Ni-Cu-Pt-Pd-Au-Ag-Rh-Cr-V discoveries in the "Ring of Fire" NI 43-101 Update (March 2011): 11.0 Mt @ 1.78% Ni, 0.98% Cu, 0.99 gpt Pt and 3.41 gpt Pd and 0.20 gpt Au (M&I) / 9.0 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inf.)

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Re: TFSA info for succession

Noront Resources

almost 15 years ago

in response to glorieux's message

Excellent information Frank, thanks for that.

So my interpretation is that as there is no capital gains, dividend or interest income tax on a TFSA when held in my hands, my beneficiary can inherit the TFSA and subsequently pay no tax on investment income.

Are you also saying that the TFSA ia not "deemed disposed" in the hands of the beneficiary or successor holder?

Here is what I understand the rules to be for registered funds.

In an RSP, the beneficiary inherits the RSP but it is considered "deemed disposed" on the date of death. Lets say it is worth $100,000 on the date of death. My beneficiary would then have a non-registered cash asset of $100,000 cash but would have $100,000 added to his income for that year. He would then pay tax at his marginal tax rate on the entire amount.

So the question is...does the beneficiary of a TFSA get the same benefit?

I am interpreting your post as saying the following:

Lets say the TFSA is worth $10,000.

The beneficiary becomes the holder of a TFSA worth $10,000. It is not considered a cash account after transfer but continues as a TFSA.

Also the beneficiary is not required to pay any additional tax as a result of the inheritance?????

Comments please.