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Wealth Builder
Gordon Pape writes on common-sense wealth-building strategies.

By Gordon Pape  | Friday, February 10, 2017

Q – My son and his wife have just returned to Canada after living abroad for several years. They have opened TFSA accounts, and I want to give them a head start on investing by transferring in kind some assets from a TFSA account I have to their accounts. This would be a gift, not a loan. We all deal with the same discount broker so that institution would handle the transfer.

The question is: Is this gift transfer allowable? Can it be made without incurring any taxes on my part? Does the annual $5,500 limit apply or can the transfer in kind exceed that amount? – Gerry G.

A – Sorry, this idea won’t fly. All Tax-Free Savings Accounts (TFSAs) are the personal assets of the plan owner. There is no provision for transferring money or securities from one person’s plan to that of someone else, even if they are married.

If your son and his wife have not maxed out their contribution limit, you could withdraw some money from your own account, tax-free, and give it to them to deposit in theirs, up to their allowed maximum. That’s about all I can suggest. – Gordon Pape

Gordon Pape is one of Canada’s best-known personal finance commentators and investment experts. He is the publisher of The Internet Wealth Builder and The Income Investornewsletter, which are available through the Building Wealth website.

Follow Gordon Pape on Twitter at and on Facebook at

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© 2017 by The Fund Library. All rights reserved.

The foregoing is for general information purposes only and is the opinion of the writer. Securities mentioned carry risk of loss, and no guarantee of performance is made or implied. This information is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting, or tax advice. Always seek advice from your own financial advisor before making investment decisions.

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