A spouse named successor holder takes the account over intact; anyone else named receives the value, with post-death growth taxable.
The Canadian position
A spouse named successor holder takes the account over intact; anyone else named receives the value, with post-death growth taxable.
Whether an asset passes through the estate determines both the probate cost and who ultimately receives it.
The Islamic position
Outside the estate either way unless the estate itself is named.
The fixed shares apply only to the net estate. Anything passing outside it is never divided by faraid.
The four Sunni schools are not recorded as differing materially on this point in the sources reviewed. Where your own case turns on it, put it to a scholar of your school.
What to do about it
- Confirm how your TFSA is currently held or designated.
- Decide deliberately whether it should follow the shares.
- Take tax advice before changing a designation.
- Re-check whenever the will changes.
General information, not legal or religious advice. Inheritance depends entirely on the exact family circumstances. Confirm the Canadian position with a lawyer in your province and any religious ruling with a qualified scholar.
Citations & sources
Every factual claim on this page traces to one of the references below. Legislation and dollar thresholds change — verify against the primary source before relying on any figure.
- Surah an-Nisa 4:11 — shares of children and parents — Quran.com
- Surah an-Nisa 4:12 — shares of spouses and uterine siblings — Quran.com
- Surah an-Nisa 4:176 — the kalalah verse — Quran.com
- Research Papers — Cambridge Muslim College
- Research — Cambridge Muslim College
- Academics — Islamic law and theology curriculum — Zaytuna College
- Encyclopaedia of Islam — Brill
- Death of a TFSA holder — Canada Revenue Agency
- What to do when someone has died — Canada Revenue Agency
- Income Tax Act, RSC 1985, c 1 (5th Supp) — Justice Laws Canada
- Rrsp rrif taxes at death ontario estate — Treadstone Law
- Who can be beneficiary ontario — Treadstone Law
- Fix tfsa over contribution withdraw immediately — Treadstone Law
- Factors cra treats tfsa trading as a business — Treadstone Law
- Updating beneficiary designations after divorce death ontario — Treadstone Law
- Can you designate beneficiary in a will ontario — Treadstone Law
- Wills & estates practice — Treadstone Law