CRA notes that an exempt contribution to a TFSA can only be made as of right no more than 30 days before the survivor payment was received from an estate

What happens if the surviving spouse (Ms. Y) of an individual (Mr. X), who bequested his TFSA to her, made a contribution to her TFSA in the amount of Mr. X’s TFSA before the executors liquidated the TFSA and distributed that amount to her?

After indicating that the “exempt contribution” definition in s. 207 did not “require that the survivor payment be received before the contribution is paid,” CRA noted that the definition requires that the contribution be designated on a Form RC240 within 30 days after the day on which the contribution is made (or at any later time that is acceptable to the Minister) – which meant that Ms. Y’s contribution could only so qualify, if made more than 30 days after the survivor payment was received from the estate, if CRA exercised its discretion to extend the 30-day period.

Neal Armstrong. Summary of 11 October 2019 APFF Financial Strategies and Instruments Roundtable, Q.5 under s. 207.01(1) – exempt contribution – (c).