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Successor holder and/or Beneficiary
April 17, 2017
9:04 am
Cranston
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April 7, 2017
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We have talked about who readily accepts POA.

One needs to review what accounts have Successor Holder and/or beneficiary and what the value to your estate could be by having both. Successor Designation will allow spouse to assume TFSA RRSP RRIF funds as TFSA RRSP or RRIF and abviously avoid probate. In the event the spouse dies and there is both Successor holder and benficiary assigned to your registered accounts your beneficiary will avoid probate on those funds although they will have to de-registered and taxed appropriately (RRSP and RRIF) for the deceased last income tax but still avoid probate fees. And yes the decision must be made by the executor to cash all into a no interest account OR allow investments to still accrue interest and the beneficiaries will have to pay income tax on any of the accrued interest collect after the date of death.

And lastly when a spouse dies one should review all Successor holder or beneficiary forms for each account and reassign beneficiaries for those accounts that had Successor holder only to avoid probate and probate fees.

April 17, 2017
1:06 pm
Loonie
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It's important to remember, though, that a spouse successor does not have to cash in the registered plans and can simply transfer them to themselves and carry on as before.

April 17, 2017
9:40 pm
Norman1
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Successor holder designation on a TFSA or beneficiary designation on TFSA/RRSP/RRIF can avoid probate taxes, but not always probate.

If the TFSA, RRSP, or RRIF is sizeable, the financial institution will wait for probate.

In most provinces, a subsequent will can revoke and change the successor/beneficiary on registered accounts. The financial institution will want to make sure that the probated will does not change the successor or beneficiary designated on the accounts themselves.

April 18, 2017
8:52 am
JW
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July 19, 2013
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In our case we have named the Spouse as Successor Holder for TFSA and Successor Annuitant for LIF and RRIFs. In addition named our adult children as Contingent Beneficiaries should the Spouse pre-decease the Account Holder. The Contingent Beneficiaries and their respective shares are consistent with our Will designations. Legal guidance we got is the TFSAs, LIF and RRIFs can move outside Probate. Norman 1 is correct the Financial Institution may hold things up until the Will is Probated but the values of the TFSAs, LIF and RRIFs need not be included in the amount declared for Probate.

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