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Discussion Starter #1
Hi folks.

My first post, but I'm an avid reader, especially of your ETF threads.

I am in the process of moving all out of a fullservice broker to an online discount broker. The mutual fund route served us for almost 18 years and our investor confidence is at the point where we are moving into ETFs.

I will be moving our children's Informal Trust Accounts there, as well.

Just wondering whether I can take their ITFs (informal trusts) and switch into a TFSA for each child. It seems that it would make more sense from a "tax-free" vantage point.

2 questions:

1. Can I do this??
2. Will my wife and I incur any tax hits doing this??

Thanks-a-ton!!
 

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A person has to be 18 years or older to own a TFSA. You cannot open one in the name of a minor child.

Last October the government proposed technical amendments that would ban asset transfer transactions between TFSAs and any other type of account. See the summary at http://www.fin.gc.ca/n08/09-099-eng.asp

If the "child" is over 18, my interpretation would be that cash would have to be wthdrawn from the trust and given to the adult child, who could then put it into his/her TFSA. The tax consequences for doing this would be the same as any other withdrawal you made from the trust to pay to the "child".

But that's just an educated guess.
 

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Thanks OhGG.
Since our child is over 18, then to the child the money goes - and into his/her TFSA.

Makes sense to me.
Cheers,
audiobill
If the "child" is over 18, my interpretation would be that cash would have to be wthdrawn from the trust and given to the adult child, who could then put it into his/her TFSA. The tax consequences for doing this would be the same as any other withdrawal you made from the trust to pay to the "child".

But that's just an educated guess.
 
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