Tax-free Savings Account (TFSA)

A person who is not your spouse with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. The person:

• has been living with you in a conjugal relationship and this current relationship has lasted at least 12 continuous months (this includes any period that you were separated for less than 90 days because of a breakdown in the relationship)
• is the parent of your child by birth or adoption
• has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support

The total of all contributions made by the holder to all their TFSAs at or before a particular time in the calendar year, excluding a qualifying transfer or an exempt contribution.

Minus all of the following amounts:

• the holder's unused TFSA contribution room at the end of the preceding calendar year
• the total of all withdrawals from the holder's TFSA in the preceding calendar year, other than a qualifying transfer or a specified distribution
• for a resident of Canada at any time in the year, the TFSA dollar limit for the calendar year; for any other case, nil
• the total of all withdrawals made in the calendar year from all of the holder's TFSAs, other than a qualifying transfer or a specified distribution, or the portion of the withdrawal that is more than the excess TFSA amount determined at that time

A contribution made during the rollover period and designated as exempt by the survivor on prescribed Form RC240, Designation of an Exempt Contribution Tax-Free Savings Account (TFSA), in connection with a payment received from the deceased holder's TFSA.

Period that begins when the holder dies and that ends at the end of the first calendar year that begins after the holder's death, or when the trust ceases to exist, if earlier.

Is generally considered to mean the highest price expressed in terms of money that can be obtained in an open and unrestricted market between informed and prudent parties, who are dealing at arm's length and under no compulsion to buy or sell.

A trust company, a licensed annuities provider, a person who is, or is eligible to become, a member of the Canadian Payments Association, or a credit union with which an individual has a qualifying arrangement.

The period that begins when the TFSA holder dies and ends at the end of the calendar year that follows the year of death.

An arrangement that is entered into after 2008 between an issuer and an individual (other than a trust) who is at least 18 years of age that is any of the following:

• an arrangement in trust with an issuer that is authorized in Canada to offer to the public its services as a trustee
• an annuity contract with an issuer that is a licensed annuities provider
• a deposit with an issuer that is a person who is a member, or is eligible to be a member, of the Canadian Payments Association, or a credit union that is a shareholder or member of a "central" for the purposes of the Canadian Payments Act

The Income Tax Act permits qualified donees to issue tax receipts for donations they receive from individuals or corporations. Some examples of qualified donees are registered charities, Canadian municipalities, registered Canadian amateur athletic associations, the United Nations or one of their agencies, or universities outside Canada that accept Canadian students.

An investment in properties, (except real property) including money, guaranteed investment certificates, government and corporate bonds, mutual funds, and securities listed on a designated stock exchange. The types of investments that qualify for TFSAs are generally similar to those that qualify for registered retirement savings plans.

A direct transfer between a holder's TFSAs, or a direct transfer between a holder's TFSA and the TFSA of their current or former spouse or common-law partner if the transfer relates to payments under a decree, order, or judgement of a competent tribunal, or under a written agreement relating to a division of property in settlement of rights arising from the breakdown of their relationship and they are living separate and apart at the time of the transfer.

A distribution from the TFSA to the extent that it is, or is reasonably attributable to, an amount that is any of the following:

• an advantage
• specified non-qualified investment income
• income that is taxable in the TFSA trust
• income earned on excess contributions or non-resident contributions

A specified distribution does not create or increase unused TFSA contribution room in the following year, nor does it reduce or eliminate an excess TFSA amount.

A person to whom you are legally married.

An individual who is, immediately before the TFSA holder's death, a spouse or common-law partner of the holder.

A payment received by a survivor during the rollover period, as a consequence of the holder's death, directly or indirectly out of or under an arrangement that ceased to be a TFSA because of the holder's death.