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Email this6:07 pm
October 20, 2014
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Just so you know, you need a separate form for Designation of Beneficary (DoB) if you have both Saving Account and Mutual Fund(s) in a registered account with Tangerine Bank.
I opened a TFSA sometime ago and filled out the DoB form. Last year I used the fund from the TFSA and purchased some Mutual Funds. Today, by accident I found out that you need to fill out a new DoB form for EACH mutual fund you own. With the TFSA you can have both Successor Holder and Beneficiaries, but with Mutual Funds you can only have one.
6:27 pm
October 27, 2013
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I don't get it. If both the savings and the mutual funds are inside the TFSA, it is the TFSA itself (i.e. and its holdings) that can be Sucessor Holder or Beneficiary. The individual holdings shold not need their individual forms.
7:44 pm
April 6, 2013
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I don't think the TFSA savings account and the TFSA mutual funds are in the same account.
The TFSA savings account is with Tangerine Bank.
According to the Mutual Funds Account Terms, the Tangerine mutual funds are sold by Tangerine Investment Funds Limited and held in a TFSA trust from Concentra Trust.
6:12 am
October 27, 2013
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Then the original post is misleading. We already know each account is treated separately from a beneficiary perspective.
12:00 pm
October 20, 2014
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I didn't mean to mislead anyone, just wanted to let people know just in case they were not aware of the difference. I didn't know and some of my friends didn't know either. Designation of Befenicarry Form is something you normally fill out when first open a registered account with a bank, not later when the fund is moved around within the bank.
With Hubert, when you use the money from TFSA Saving Account to buy GIC, they also call each individual GIC an "account". But we don't have to fill out a DoB for each "account" (unless I'm not aware of that either). From what I understand, when you sell a TFSA mutual fund the money will go back to the TFSA Saving Account (unless you transfer out) then the original DoB should cover it all.
7:04 pm
April 6, 2013
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It really depends how things are set up by the financial institution.
It would have been possible for Tangerine Bank to arrange for a single TFSA trust account with a trustee that held all the savings deposits, GIC deposits, and mutual funds that make up one's Tangerine TFSA items.
I suspect Tangerine Bank didn't do so to take advantage of special treatment available in section 146.2 of the Income Tax Act and save trustee fees for their TFSA savings accounts and TFSA GIC's. The definition of "qualifying arrangement" there seems to allow deposits with a member of the Canadian Payments Association to be directly registered by the member with CRA as a TFSA, without having to hire a trustee to set up a trust to hold the deposits.
Mutual funds are not deposits. So, Tangerine Investment Funds Limited had to hire a trustee to hold them in trust and register the trust as a TFSA.
I don't know what happens when one redeems the mutual funds in a Tangerine TFSA without transferring out or reinvesting into another mutual fund. Their TFSA page mentions three different kinds of TFSA accounts:
- Tangerine Tax-Free Investment Fund Account for mutual funds
- Tangerine Tax-Free Guaranteed Investment for GIC's
- Tangerine Tax-Free Savings Account
7:18 pm
October 20, 2014
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Thank you Norman1 for clarifying that. I think Tangerine should let us know when a mutual fund account is opened that we need to fill out the DoB Form.
9:17 pm
April 6, 2013
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Rose said
Thank you Norman1 for clarifying that. I think Tangerine should let us know when a mutual fund account is opened that we need to fill out the DoB Form.
I agree. That is a good idea.
Customers should not need to dig around to find out that one is dealing with two different Tangerines (Tangerine Bank and Tangerine Investment Funds Limited) when one puts money into both Tangerine TFSA GIC's and Tangerine mutual funds. Consequently, the beneficiary form signed for the GIC's doesn't apply to the mutual funds and vica versa.
Something similar could occur when one walks into a bank branch. For example, in an RBC Royal Bank branch, one could end up with GIC's from Royal Bank of Canada, RBC mutual funds sold by Royal Mutual Funds Inc., and investments through an embedded broker from RBC Dominion Securities!
2:37 am
October 21, 2013
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While we're on this topic..
When you convert your RSPs to RIFs, you will need to fill out beneficiary forms all over again. Not all FIs will remind you of this, so best to put a note in your Financial Plan to remind you of this when you turn 71 or whenever you make the conversion.
This is even more important at this stage, because the odds of your dying are significantly improved at this stage, and get better every year - to put it bluntly!
Please write your comments in the forum.