Skip to main content
Canada’s most-awarded newsroom for a reason
Enjoy unlimited digital access
$1.99
per week
for 24 weeks
Canada’s most-awarded newsroom for a reason
$1.99
per week
for 24 weeks
// //

Getty Images/iStockphoto

Dear Nancy,

I have two TFSA questions. The first is that my daughter turned 18 late last year and she has some money that she can put into a TFSA. How much can she contribute? The $31,000 since TFSAs started or only the amount for this year?

My second question is if I want to leave my TFSA to her instead of my husband when I pass away how do I do that and is it a good idea?

Story continues below advertisement

Thanks,

Sharon

Dear Sharon,

Once an individual with a valid Canadian social insurance number turns 18 they are eligible to open a TFSA. So in the case of your daughter, she could have opened one in 2013. She will only be able to contribute the $5500 for 2013 and $5500 for 2014. She cannot use the allowance room for any of the previous years.

As for your second question: I think it is important to point out that if you name your husband as a successor annuitant he can transfer your TFSA into his if you predecease him. Even if you both have contributed the maximum amounts, yours can be transferred into his and continue to be tax sheltered. If you name your daughter as the beneficiary she will receive the assets but she will not have the option to move the assets into her TFSA. Ultimately, it is your choice as to who receives your TFSA, but I thought it is important that you know the pros and cons of each choice.

With matters such as this it is a good idea to get estate and tax planning from a professional. I suggest you discuss your options with your financial adviser.

Nancy Woods is an associate portfolio manager and investment adviser with RBC Dominion Securities Inc. Visit her website www.nancywoods.com or send an email request to asknancy@rbc.com. You can send your questions to asknancy@rbc.com as well.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies