# RRSP, TFSA upon death and probate fees



## AntiBrian (Aug 26, 2009)

If a widow/widower dies with an RRSP and/or TFSA and there is an adult non disabled child, is there any way to transfer the accounts over to said child, or in the case of the RRSP any way to reduce the tax burden.

Also what is the deal with probate fees, can one avoid them, what if the will is not being contested and is straight forward.


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## stardancer (Apr 26, 2009)

RRSP- a tax-free rollover only applies to a spouse or qualified eligible dependent. So with no disabled adult child, the RRSP would be cashed in and taxable to the estate.

TFSA- a rollover applies only to a spouse, so again the adult child cannot get the rollover. The TFSA would be cashed in, this time tax-free to the estate.

Probate fees depend on your province. The only way to avoid them is to gift cash during the person's lifetime, cash in and buy some sort of life insurance with the adult child as the beneficiary, set up some sort of inter-vivos trust, or make the non-registered accounts joint.


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## TaxGuy (Apr 7, 2009)

With an RRSP or RRIF you can name a beneficiary directly on the account (just like insurance). This avoids probate.

Most provinces allow a direct beneficiary designation on the TFSA but not all have passed legislation.


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