Deposit or annuity contract TFSA

When the last holder of a deposit or an annuity contract TFSA dies, the arrangement ceases to be a TFSA. The fair market value of the TFSA at the date of death will be received tax-free by the deceased's estate or other designated beneficiaries. There are no reporting requirements for these amounts.

Any investment income or gains that accrue under the former TFSA after the date of death will be taxable under the regular taxation rules that apply depending on the specific characteristics of the deposit or annuity contract. For more information on how to report these amounts, see Guide T4015, T5 Guide – Return of Investment Income, or Guide T4013, T3 Trust Guide, as applicable.

Forms and publications

• Guide RC4157, Deducting Income Tax on Pension and Other Income, and Filing the T4A Slip and Summary
• Guide T4013, T3 Trust Guide
• Guide T4015, T5 Guide - Return of Investment Income
• Guide T4061, NR4 - Non-Resident Tax Withholding, Remitting, and Reporting

Date modified:

2016-11-16