When you die, your TFSA does not disappear, but its treatment depends on your designations and province rules.
If you named a successor holder
A spouse or common-law partner can become the new account holder and maintain the TFSA structure with continued tax-free growth.
If you named a beneficiary
The value at date of death is usually tax-free to the beneficiary. Any growth after death may be taxable unless transferred correctly and promptly under available rules.
If the TFSA goes to the estate
Probate delays and additional administrative steps may apply, depending on province and will structure.
Planning tips
- Review designations regularly.
- Align account forms with your will.
- Keep records for executors.