The most important thing is to keep all paperwork when naming a a beneficiary or successor holder. I went to CIBC after my husband died and they had no record of him naming me as the successor holder. Luckily I went into his email and found the paperwork that he sent to them. Never assume the bank is on the ball and that the people who work there are competent. It happens more often than you think unfortunately. My brother works for a big bank and he is appalled at how often this type of thing happens.
Rules are a bit different in the province of Quebec. In our province we don't need to list anyone because it the last will that is used and they will automatically render your spouse successor holder
how about in this following situation. During marriage, the wife puts her husband as the successful holder. But if later on they divorce, what will happen? Thank you
Hello, If I want to be Beneficiary of my Land Trust myself to control 100% everything by myself only and my wife and kids name listed in the land trust if something happens to me. I like to set it up so the kids and my wife become beneficiaries upon the death and they don't get slammed with a tax bill. What position i can give them?
Great information thanks -hv a Q - if u r the 2nd surviving spouse - then u can only name a beneficiary to take over yr tfsa acct after u pass - How does that work in the beneficiary's hands ?
Why do banks not tell you about SUCCESSOR HOLDER and tell you about how to do it, is it a special form that the bank must give you. I really do not understand why everything is so complicated with time lines for roll overs to spouses or common law partners at a very difficult time for a spouse. Can the bank, or does the bank have special forms to do this for you. It’s great that you are explaining everything in detail. Just wondering if Revenue Canada has a pamphlet on Tax Free Savings Accounts explaining everything as you just did.. if not, they should have one that can be given out at the time you open a Tax Free Account.
Very good information on tax planning. Wondering if you could help with this TFSA scenario? Both spouses are designated as successor holders. Both are maxxed on their lifetime contributions. One has a TFSA of $84,000, the other has a TFSA of $60,000. On the death of one spouse, his TFSA becomes the other spouse's. Now the surviving spouse has two TFSA's, her own TFSA plus the successor holder TFSA. She makes the $6000 annual limit contribution to her TFSA. She consolidates for administrative ease into one TFSA, for a total of $150,000. In the same year, she withdraws the $150,000 and closes her original TFSA. She opens a new TFSA account later in the year with an online bank, but does not make any further contributions in the year she closed the original TFSA. After January 1 of the next year, she can contribute the allowed $6500 yearly limit. Can she now make a $156,500 contribution to the new TFSA account without penalty tax? Are there any special considerations to rollover the deceased spouse's TFSA to her own to consolidate to one account?
Very informative! It's interesting that neither my wife's TFSA plan manager (her company plan), nor my own TFSA manager (TDI) have communicated the option for successor holder. We were given (and have completed) the beneficiary designation's, for each other respectively, but don't ever recall being given the option to designate a successor holder. I guess this is something we need to ask for (i.e. specific form), or, maybe this is something that is designated in a Will. We're going to have to call them to get this resolved.
Another great video Adam. Could you do a video about probate at some point? I hear it mentioned a lot in various financial planning videos but it would be great to get a more detailed explanation. Thanks again!
Hi Adam, I am familiar with the differences of a successor holder and beneficiary designation. However, I am unable to find any information in regards to having a successor holder and having a backup beneficiary designation in the event that a husband and wife should unfortunately pass at the same time. What form needs to be filled out? And does it make a difference if you reside in Ontario or BC? Thanks.
Very good information Sir. Is it possible to list spouse as a Successor and at the same time add 1 Beneficiary also on TFSA account ? .....and how to divide percentage between them ! ? Please make another detailed video on it
Is this Successor Holder applicable only to TFSA? Can this be applicable in RRSP Rollover as well. If it isn't. What is the best way for RollOver to Spouse or Any Other Beneficiary.
Hi Adam. I have found your channel recently and am really enjoying it. I am working my way through the videos from the beginning. :) This particular video really resonated with me. You mentioned having this item on a checklist of things that a spouse or estate administrator would be able to use for financial instruments. I was wondering if you had a template that you could share or if you have considered a video on this topic as it would seem to fit well with the education that you are providing us. Many thanks, and keep up the great work!
Thanks for the valuable information. Just wondering if the someone buys ETFs and/or stocks in his TFSA account, can his/her successor take over the account without going into the probate? Thanks
Does the unused contribution room also transfer over to the Successor Holder? If so, will keeping the accounts separate allow both TFSA's contribution room to grow each year?
Hey thanks for the video!!! Quick question, if you are the successor to a TFSA, let's use your example of Joe and Sally, Joe takes over Sally's TFSA (let's say of 150,000). Does Sally keep getting the annual contribution room increase? Or does her contribution increases end the year she passes? I'm assuming it ends, but thought I would ask. Thanks so much!!
My mom who is 82 doesn’t have tfsa she lives with me . Is it advisable for me to use her tfsa allocation using my money and thus using myself as a beneficiary. Any down side?
I'm recently separated from my wife. We're on decent enough terms that I'm fine keeping her as successor holder for my TFSA. I assume I can do this but that once divorced, I'll have to change her to a beneficiary (if I still plan on leaving her anything). Can you please confirm?
Hey, why is this a ripoff of single people? The difference merely recognizes that financial planning is a family undertaking. If one spouse dies the survivor takes the deceased’s place. There is no doubling of contribution limits.
@@bunkerhill4854 my wife and I both have 75.5k in tfsa. I pass away. She is successor holder. She would receive my TFSA and now have 151k in TFSA. If she withdrew the whole amount, she would get the full 151k back the next year, plus 6k new contribution. Hope that clears it up for you.
The most important thing is to keep all paperwork when naming a a beneficiary or successor holder. I went to CIBC after my husband died and they had no record of him naming me as the successor holder. Luckily I went into his email and found the paperwork that he sent to them. Never assume the bank is on the ball and that the people who work there are competent. It happens more often than you think unfortunately. My brother works for a big bank and he is appalled at how often this type of thing happens.
Get a COPY of EVERYTHING .....save a lot pain later..
Do I have to go to a lawyer on naming a successor holder or the bank can do it for you?
One of best video
Thanks JD
What will hapoen if I forgot to put successor on my TFSA?
Great content - never knew such a thing existed. - these little nuggets are priceless.
What you mean roll over?
Money goes to beneficiary or successor holders registered or non registered accounts. Rrsp to rrsp, TFSA to TFSA etc.
I Have TFSA in wealthsimple I just found out only beneficiary option provided in the flatform..What should I do?
This is one of the best information I have received regarding TFSA as I was not aware of this prior to watching your video. Thanks Adam!
Thanks Adam
Can you name your spouse as Successor Holder for your RRSP and other investments?
Only beneficiary
Rules are a bit different in the province of Quebec. In our province we don't need to list anyone because it the last will that is used and they will automatically render your spouse successor holder
Can I named children as successor holder?
No, just spouse or CL partner
Thanks I learned something again and am in the process of making all TSFA's and RRSP successor holder.
Only TFSA has successor holder. Beneficiary for RRSP.
@@ParallelWealth Thanks Adam. very useful information. I wonder if this process can be done through online account setting or should I have call them?
Excellent video explaining a complicated subject. Can you name under-aged grandsons as beneficiaries? Thank you.
Yes, but would need a trustee listed. Sometime better to do through a will, so speak with your advisor on this
@@ParallelWealth Thank you.
Great videos Adam!!!
Thanks Jose
Thanks for posting just double checked my paperwork and mine lists my partner as successor. Great to know one less headache when the time comes.
Thank you very much for the Successor Holder Video.
Other than the very informative tips 👌🏻pls give some tips on skin care your face looks amazing 🤩 Anti aging tips 😂
Bahaha, not this morning it's not. Took a metal hook to the eye last night, now swollen and black. Otherwise I do nothing...haha. thx tho
Awesome video Adam !!! you are one of the best on youtube for Canada.
Excellent video and explanation - thank you!
how about in this following situation. During marriage, the wife puts her husband as the successful holder. But if later on they divorce, what will happen? Thank you
list a beneficiary that is someone else.
I am deaf, no close captioned
TH-cam generates it. You just click the CC button.
Super important information and a simple change that can make a huge difference.
Hello,
If I want to be Beneficiary of my Land Trust myself to control 100% everything by myself only and my wife and kids name listed in the land trust if something happens to me.
I like to set it up so the kids and my wife become beneficiaries upon the death and they don't get slammed with a tax bill. What position i can give them?
Great information thanks -hv a Q - if u r the 2nd surviving spouse - then u can only name a beneficiary to take over yr tfsa acct after u pass - How does that work in the beneficiary's hands ?
On death the account is liquidated and money moved to the beneficiary. They will need TFSA room to deposit to theirs.
@@ParallelWealth thanks- if they don't hv room in their tfsa - guess they pay taxes?
@@alwayspositive999only on the growth since the time of death
Why do banks not tell you about SUCCESSOR HOLDER and tell you about how to do it, is it a special form that the bank must give you. I really do not understand why everything is so complicated with time lines for roll overs to spouses or common law partners at a very difficult time for a spouse. Can the bank, or does the bank have special forms to do this for you. It’s great that you are explaining everything in detail. Just wondering if Revenue Canada has a pamphlet on Tax Free Savings Accounts explaining everything as you just did.. if not, they should have one that can be given out at the time you open a Tax Free Account.
I believe there’s no successor holder designation in Québec.
Could be the case. Quebec has many different rules when it comes to taxes and estate planning.
can you put your son/daughter as a successor holder ?
Nope
Very good information on tax planning. Wondering if you could help with this TFSA scenario? Both spouses are designated as successor holders. Both are maxxed on their lifetime contributions. One has a TFSA of $84,000, the other has a TFSA of $60,000. On the death of one spouse, his TFSA becomes the other spouse's. Now the surviving spouse has two TFSA's, her own TFSA plus the successor holder TFSA. She makes the $6000 annual limit contribution to her TFSA. She consolidates for administrative ease into one TFSA, for a total of $150,000. In the same year, she withdraws the $150,000 and closes her original TFSA. She opens a new TFSA account later in the year with an online bank, but does not make any further contributions in the year she closed the original TFSA. After January 1 of the next year, she can contribute the allowed $6500 yearly limit. Can she now make a $156,500 contribution to the new TFSA account without penalty tax? Are there any special considerations to rollover the deceased spouse's TFSA to her own to consolidate to one account?
Hi does the "successor holder" keep all the investments (stock etc ) with in the TFSA .. Thanks..
Yup
Do I have to go to a lawyer first on naming a successor holder or just go straight away to the bank?
List it on your account where you hold your TFSA. No lawyer needed.
Very informative! It's interesting that neither my wife's TFSA plan manager (her company plan), nor my own TFSA manager (TDI) have communicated the option for successor holder. We were given (and have completed) the beneficiary designation's, for each other respectively, but don't ever recall being given the option to designate a successor holder. I guess this is something we need to ask for (i.e. specific form), or, maybe this is something that is designated in a Will. We're going to have to call them to get this resolved.
Yup, could save many thousands at death. Most 'advisors' don't even know the difference.
Another great video Adam. Could you do a video about probate at some point? I hear it mentioned a lot in various financial planning videos but it would be great to get a more detailed explanation. Thanks again!
Added to the list. The issue is each province is very different rules and numbers but will incorporate it all together.
Why is it that only the spouse or common law partner can be designated as successor holder? What if there is no spouse? What happens then?
That's the rules. Don't make them unfortunately. No spouse or CL then can only list a beneficiary
Hi Adam, I am familiar with the differences of a successor holder and beneficiary designation. However, I am unable to find any information in regards to having a successor holder and having a backup beneficiary designation in the event that a husband and wife should unfortunately pass at the same time. What form needs to be filled out? And does it make a difference if you reside in Ontario or BC? Thanks.
Done through your financial institution. No diff BTW those provinces
What happens if the Beneficiary misses the (Dec. 31st /yr. after death) rollover period? Thx
Would need the conteibutiin room to take on the TFSA
Thanks!
Very good information Sir.
Is it possible to list spouse as a Successor and at the same time add 1 Beneficiary also on TFSA account ? .....and how to divide percentage between them ! ?
Please make another detailed video on it
Great question. Should be able to. See no reason why not
Is this Successor Holder applicable only to TFSA? Can this be applicable in RRSP Rollover as well. If it isn't. What is the best way for RollOver to Spouse or Any Other Beneficiary.
Successor only on the TFSA. But a spouse or CL on the RRSP as beneficiary works much the same way as it rolls over tax free.
Hi Adam. I have found your channel recently and am really enjoying it. I am working my way through the videos from the beginning. :)
This particular video really resonated with me. You mentioned having this item on a checklist of things that a spouse or estate administrator would be able to use for financial instruments. I was wondering if you had a template that you could share or if you have considered a video on this topic as it would seem to fit well with the education that you are providing us.
Many thanks, and keep up the great work!
Thanks for the valuable information. Just wondering if the someone buys ETFs and/or stocks in his TFSA account, can his/her successor take over the account without going into the probate? Thanks
Very useful information
Thank you! Glad it was helpful for you.
Does the unused contribution room also transfer over to the Successor Holder? If so, will keeping the accounts separate allow both TFSA's contribution room to grow each year?
No it won't.
Hey thanks for the video!!! Quick question, if you are the successor to a TFSA, let's use your example of Joe and Sally, Joe takes over Sally's TFSA (let's say of 150,000). Does Sally keep getting the annual contribution room increase? Or does her contribution increases end the year she passes? I'm assuming it ends, but thought I would ask.
Thanks so much!!
My mom who is 82 doesn’t have tfsa she lives with me . Is it advisable for me to use her tfsa allocation using my money and thus using myself as a beneficiary. Any down side?
Your mom would have to open a TFSA account as well as name you as the beneficiary. The downside would be if she named someone else.
I'm recently separated from my wife. We're on decent enough terms that I'm fine keeping her as successor holder for my TFSA. I assume I can do this but that once divorced, I'll have to change her to a beneficiary (if I still plan on leaving her anything). Can you please confirm?
Excellent video Adam. Does the same designation apply to RRSP? i.e. beneficiary or successor?
RRSP only has beneficiary
Hi Adam, In regards to a Successor Holder, if a spouse has passed, does the other spouse also receive the unused contribution room? Thanks
I am sure No. just the contributions and gains
Another rip off for single people. All ridiculous.
It's never ending...
Hey, why is this a ripoff of single people? The difference merely recognizes that financial planning is a family undertaking. If one spouse dies the survivor takes the deceased’s place. There is no doubling of contribution limits.
@@bunkerhill4854 there is in fact a doubling of contribution room if both people are maxed. We have seen it first hand with clients.
@@ParallelWealth can you describe such a situation?
@@bunkerhill4854 my wife and I both have 75.5k in tfsa. I pass away. She is successor holder. She would receive my TFSA and now have 151k in TFSA. If she withdrew the whole amount, she would get the full 151k back the next year, plus 6k new contribution. Hope that clears it up for you.