Can you designate a beneficiary for a TFSA, and how does that designation affect the account on death?

Can you designate a beneficiary for a TFSA, and how does that designation affect the account on death?

• A. No; TFSA cannot designate beneficiaries.
• B. Yes; a beneficiary receives value outside the TFSA upon death, potentially simplifying transfer.
• C. Yes; the beneficiary takes over the TFSA and continues tax-free.
• D. Yes; the beneficiary automatically becomes holder of TFSA and pays taxes.

Answer: (B)