CRA considers that a “survivor payment” can be made out of the deceased’s TFSA even where this occurs in the executor’s discretion

In general, a surviving spouse of the deceased, if designated as a beneficiary, can contribute and designate all or a portion of a “survivor payment” from the deceased’s TFSA as an exempt contribution to his or her own TFSA. The definition of “survivor payment” references a payment to the survivor “directly or indirectly” out of the former TFSA because of the deceased’s death.

CRA considered that these requirements could be satisfied (in light inter alia of s. 248(8)(a)) where an executor in his discretion chooses to satisfy a specific legacy out of TFSA property, rather than this being spelled out in the will.

Neal Armstrong. Summary of 11 May 2017 External T.I. 2016-0679751E5 Tr under s. 207.01(1) - exempt contribution – para. (b).