What happens to a TFSA on the death of the account holder if a successor holder is designated?

What happens to a TFSA on the death of the account holder if a successor holder is designated?

• A. The TFSA is automatically terminated and all assets taxed.
• B. The successor holder can continue the TFSA for a spouse; a named beneficiary typically receives the funds outside the TFSA.
• C. A beneficiary must inherit within 30 days to avoid penalties.
• D. The account cannot be closed and funds stay in TFSA until age 100.

Answer: (B)