New regulation simplifies naming a beneficiary for Tax Free Savings Accounts

December 18, 2008
New regulation simplifies naming a beneficiary for Tax Free Savings Accounts

Edmonton... Effective January 1, 2009 Albertans will be able to designate their Tax Free Savings Accounts to a beneficiary without using a will.

A new regulation under section 47 of Alberta’s Trustee Act will allow account owners to designate the beneficiary at the financial institution where the account is held. This eliminates the need to go through the sometimes longer and frequently more expensive process of designating the beneficiary in the owner’s will.

The regulation was developed following consultation with a number of organizations, including the Law Society of Alberta, the Canadian Bar Association, Alberta Finance and Alberta Seniors and Community Supports. Its implementation is timed to coincide with the Tax Free Savings Accounts’ public availability starting January 1 in the New Year.

Tax Free Savings Accounts were introduced by the federal government in its February 2008 budget. A Tax Free Savings Account offers a flexible savings account that will allow Canadians to earn tax-free investment income to more easily meet lifetime savings needs. More complete details are available from the Government of Canada at http://www.fin.gc.ca/tfsa-celi/index-eng.html.

Alberta’s Trustee Act details the powers available to trustees in managing assets and sets out the law in the province around designating beneficiaries.

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Media inquiries may be directed to:
David Dear
Communications
Alberta Justice and Attorney General
780-427-8530

To call toll free within Alberta dial 310-0000.

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