When a spouse is named as beneficiary, how does a successor holder designation affect the TFSA?

When a spouse is named as beneficiary, how does a successor holder designation affect the TFSA?

• A. It always terminates the TFSA at death.
• B. It allows immediate transfer to the spouse with taxation upon transfer.
• C. If a successor holder is named, the TFSA can be continued for the spouse without a deemed disposition; otherwise, designation to a spouse is outside the TFSA.
• D. It converts the TFSA to a RRSP for the spouse.

Answer: (C)