Sun GIC Max

Target client profiles:
Sun GIC Max is a good choice for young savers, busy families, and those either nearing or enjoying retirement who want to minimize risk and stay safe from volatile markets.

Selling features:
Sun GIC Max provides your clients with a higher interest rate than the SLF Trust GIC by locking in their investments for the entire term. The guaranteed interest means your clients are not exposed to market fluctuations. When held as a registered retirement savings plan (RRSP), the Sun GIC Max can easily be converted into a registered retirement income fund (RRIF) to generate a steady stream of retirement income.
Overview
  • Higher interest rates than redeemable products.
  • The Sun GIC Max can be issued as non-registered, Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF) or Tax-Free Savings Account (TFSA).
  • The contract is available with compound interest, monthly interest or annual interest. (compound only for RRIF)
  • Short term (30 to 364 days) and long term (1 to 5 years) guaranteed interest investments.
    • 6 - 25 years are available for RRIF registration.
    • Short-term Sun GIC Max investments are only available with compound interest and are not available for RRIF.
    • Customer selected end dates (CSED) are available.
  • A daily interest investment is available.
  • Unless alternate instructions are received before the maturity date, short term investments will automatically roll to the same term. All other investment terms will roll to the daily interest investment.
  • The minimum guaranteed interest investment is $1,000.
  • The rate guarantee is 45 days.
  • Rates will be interpolated for investments with a CSED.
  • There are no up-front or annual fees - all the money earns interest immediately.
  • Protected by Canada Deposit Insurance Corporation (CDIC). Terms greater than 5 years do not qualify for CDIC coverage. Refer to their website for more information.
  • PAC (pre-authorized chequing) is not available.
Retirement income product conversion

The maturity date for an RRSP is December 31 of the year the client reaches age 71. The client can request an earlier date. Guaranteed interest investments in a Sun GIC Max RRSP that end after the maturity date of the contract, must be transferred to a Sun GIC Max RRIF. Money in the daily interest investment can be transferred to any product with RRIF registration, withdrawn or transferred out as chosen by the client.

Sun GIC Max, GIC and Superflex/Income Master - Comparison

Interest and investments

Interest types

There are 3 interest types available.

Superflex accumulation annuity (Insurance GIC*):
All interest types are available and can all be selected within the same product, unlike the GIC products described below.
GIC products (Trust GICs):
Each investment within a contract must have the same interest type. If a client wishes to reinvest a maturing investment to an investment with a different interest type (i.e. compound interest to annual interest), a new GIC will be required with a new application completed. Instructions will also be required to transfer the money from the existing GIC to the new GIC.


Regardless of the interest type selected, each product offers:

  • a daily interest investment.
  • guaranteed interest investments (minimum investment $1,000).
Interest types
1. Compound interest
  • After interest is added to the investment each day, the combined sum continues to earn the same rate as the original principal for the duration of the guaranteed investment.
  • Interest is quoted on an effective annual basis.
  • Interest rates are expressed as a rate per year compounded annually.
2. Monthly interest - not available for RRIF
  • Interest is calculated and added to the value of each guaranteed interest investment daily.
  • The amount of interest earned each month will equal 1/12th the annual interest. The annual interest equals the principal multiplied by the applicable interest rate.
  • For the GIC products, interest from a guaranteed investment rolls to the daily interest investment automatically on each monthly anniversary date of the individual investment.
  • If the client chooses to withdraw the interest on a monthly basis, electronic funds transfer (EFT) will be used to transfer the amount to the client's bank account.
  • For the Superflex accumulation annuity, monthly interest must be paid out each month to the client via EFT.
3.  Annual interest - not available for RRIF
  • Interest is calculated and added to the value of each guaranteed interest investment daily.
  • Interest is quoted on an effective annual basis.
  • Interest from a guaranteed investment rolls to the daily interest investment automatically on each annual anniversary date of the individual investment.
  • For the Superflex accumulation annuity:
    • The final year of interest will automatically roll with the principal amount to a new investment with the same term. (unless alternate directions are received for maturity action)
    • Alternatively an annual interest payout investment can be selected where the annual interest (including the final year) will be paid out to the client each year.
  • If the client chooses to withdraw the interest on an annual basis, there are 2 payment options; cheque or EFT.
When guaranteed interest investments end
  • For GIC products with terms of greater than a year, interest and principal from a guaranteed investment roll to the daily interest investment automatically. Investment instructions are required if a subsequent investment or withdrawal is required.
  • Superflex accumulation annuity investments and investments with terms of less than 1 year (which are only available within a GIC product) automatically roll to the same term. Requests to reinvest differently or withdraw must be received prior to maturity.

* This product is an accumulation annuity issued by Sun Life Assurance Company of Canada.

Contributions

This document provides information about contributions to Registered Retirement Savings Plans (RRSPs). Products affected are Guaranteed Investment Certificates (GIC), Superflex, and segregated funds.

The RRSP dollar limit

A taxpayer’s RRSP dollar limit is identified on the Notice of assessment or Notice of reassessment produced by the Canada Revenue Agency (CRA). This is referred to as the RRSP contribution room. You can view RRSP limits on the CRA website.

The unused RRSP contribution room

The unused RRSP contribution room measures the amount of RRSP contribution that can be carried forward for future years. It is used for three purposes:

  1. The unused RRSP contribution room determines the amount of RRSP contribution that may be made and deducted in a year allowing a taxpayer to defer the contribution made to their RRSPs. This is the carry forward function.
  2. The unused RRSP contribution room limits the improvements that may be made to the past service benefits of a taxpayer under a Registered Pension Plan (RPP). The RRSP contribution room allows a person to integrate benefits provided under RPPs with contributions to RRSPs. The taxpayer must ensure that their total tax-assisted saving does not exceed the overall allowable limits.
  3. The unused RRSP contribution room is used to determine if a taxpayer has over-contributed to their RRSPs.

To determine the amount of the unused RRSP contribution room, Pension Adjustment (PA) and Past Service Pension Adjustment (PSPA) have to be taken into consideration.

The formula to calculate the unused RRSP contribution room is calculated at the end of a year as:

  1. the unused RRSP contribution room at the end of the preceding tax year plus
  2. the lesser of the RRSP dollar limits for the year and 18% of earned income for the previous year minus
  3. all PAs for the previous year, the net PSPA and RRSP contributions deducted in the year.

While a taxpayer's unused RRSP contribution room will normally be positive or zero, it can also be negative meaning they may have over-contributed.

  • A negative amount may also result where an improvement to the taxpayer's past service benefits under an RPP results in a PSPA that is greater than the available contribution room.
  • A taxpayer is permitted to over-contribute to their RRSP for a lifetime amount of $2,000.00 (but this limit is increased to $8,000.00 if the over contribution was prior to February 27, 1995).
Example 1: No carry-forward of unused RRSP contribution room

Let's track an example through 2015 and 2016 and assume a taxpayer has earned income of $150,000. The 2015 RRSP dollar limit was $24,930 and the 2016 RRSP dollar limit was $25,370.00.

  • He is not a member of an RPP or Deferred Profit Sharing Plan (DPSP), therefore, no PA or PSPA.
  • He makes the maximum contribution each year.
  • The unused deduction room at the end of 2015 is as follows:
The unused contribution at the end of 2014

0.00

+ The lesser of RRSP limit and 18% of previous year (2014) earned income

+$24,930

- RRSP contribution deducted in 2015

-$24,930

Unused contribution room in 2015

0.00

  • The unused contribution room at the end of 2016 is as follows:
The unused contribution room at the end of 2015

0.00

+ The lesser of RRSP limit and 18% of earned income

+$25,370

- RRSP contribution deducted in 20116

-$25,370

Unused contribution room in 2016

0.00

Example 2: Carry forward of unused RRSP contribution room

Let's track another example through 2015 and 2016.

  • Assume a taxpayer has earned income of $150,000.
  • He is not a member of an RPP or DPSP, therefore, has no PA or PSPA.
  • He did not make contribution in 2015 therefore he can carry forward unused RRSP contribution room.
  • The unused contribution room at the end of 2015 is as follows:
The unused contribution room at the end of 2014

$0.00

+ the lesser of RRSP limit and 18% of earned income

+$24,930

- RRSP contribution deducted in 2015

-$0.00

Unused contribution room in 2015

$24,930

  • The unused contribution room at the end of 2016 is as follows:
The unused contribution room at the end of 2015

$24,930

+ The lesser of RRSP limit and 18% of earned income

+$25,370

- RRSP contribution deducted in 2016

-$25,370

Unused contribution room in 2016

$24,930

Deductible contribution

The contributor of an RRSP may deduct the lesser of:

  1. all contributions paid on or before the day that is 60 days after the end of the year; and
  2. his RRSP deduction limit for the year.
Client-selected end dates

Client-selected end dates (CSED), available on all Sun Life guaranteed interest products available for sale, allow clients to select the end dates on their guaranteed interest investments. Having this option increases our competitiveness by spreading out both the workload and flow of funds to invest. This, in turn, helps you attract more clients and retain the ones you have. It can also spread your workload throughout the year.

Client-selected end dates give clients flexibility and control over their money by allowing them to:

  • plan future guaranteed interest investments to roll over at the same time as existing investments, so they can take advantage of large case rate enhancements.
  • choose an end date that suits their needs (planning for an upcoming large purchase, a vacation etc.).
  • choose any length of investment as follows:
    • GICs - between 30 days and 5 years
    • RRIF registrations - between 1 and 25 years
    • Superflex annuity - between 1 and 10 years

Interest rates will be interpolated. Interpolation is calculated to the nearest .01%.

The formula for interpolation is RATE = R1 + (#days/365) x (R2-R1) where:

  • R1 = rate for the next lowest even year
  • R2 = rate for the next highest even year
  • #days = number of days into the non-even year
Investment options

There are 3 types of investment options available to your clients:

  • Daily interest investment
  • Guaranteed interest investments
  • Auto ladder
Daily interest investment
Interest
  • The interest rate can fluctuate daily.
  • Interest begins when we receive the application and the money.
  • Interest is calculated and credited daily to the balance of the investment.

Note: Rate enhancement levels do not apply to daily interest.

Advantages
  • Money can be deposited or withdrawn at any time.
  • The money is accessible with no market value adjustment (MVA).
  • Deposits can be made by:
  • Pre-authorized chequing (PAC) (not available on GIC products),
  • cheque,
  • external transfer, or
  • any combination of these.
  • Once $1,000 has accumulated in the daily interest investment, a client may choose to transfer the money into a guaranteed interest investment.
  • Minimum investments for daily interest investment If PAC is set up, the minimum PAC amount is $50 per month.
  • If PAC is not set up, the minimum amount required to open a Superflex accumulation annuity or GIC product is $250.
  • The minimum required to open a guaranteed interest product with RIF registration is $5000.

Note: The minimum opening investment should always be paid with application except in the case of an external transfer.

Guaranteed interest investments
  • The interest rate is guaranteed for a specific term.
  • The minimum amount required to establish a guaranteed interest investment is $1,000.
  • Interest is calculated from the date the guaranteed interest investment is established.
Advantages

The client can have several guaranteed interest investments all within the same plan. With the exception of GICs with RIF registration a client can have an unlimited amount of investments in one contract - in any or all of the terms available. GIC RRIFs are limited to 5 investments.

Note: GIC products only allow one interest type per plan (i.e. all compound or all annual interest).

The interest rate is guaranteed for any period between:

  • 1 and 5 years for GIC products (short term investments, less than 1 year, are also available on GIC products)
  • 1 and 10 years for Superflex accumulation annuity
  • 1 and 25 years for all products with RIF registration

This means the client can select:

  • a certain term or (e.g. 19 months, 3 years, etc.)
  • If a certain term is selected, the investment will mature at the end of the selected number of years/months.
  • a specific end date (e.g. October 15, 2016, July 20, 2017, etc.)
  • If a specific end date is selected, the investment will mature on that specific date.

With the exception of the Sun GIC Max, money can be withdrawn before the end of a guaranteed interest investment, but may have a market value adjustment (MVA).

At the end of the Superflex/Income Master accumulation annuity or GIC/Sun GIC Max guaranteed interest investment term, the client can:

  • withdraw their money,
  • reinvest their money in a new guaranteed interest investment at the then current interest rate for the selected term,
  • leave their money in the daily interest investment.

If the client has their money in the following, the money automatically reinvests based on the posted rate available for that product for the same term, unless investment instructions are provided before the investment matures:

  • Guaranteed Investment Certificate (GIC) for a short term investment (i.e. 30 days - 270 days),
  • Sun GIC Max for short term investment (i.e. 30 days - 270 days),
  • Superflex/Income Master annuity.

If the client has their money in the following, we credit the money to the daily interest investment at maturity, unless investment instructions are provided before the investment matures:

  • long-term Sun GIC Max
  • long-term Guaranteed Investment Certificate (GIC)

Note: Prior to maturity, notices will be mailed to clients and maturity instructions can be provided up to 45 days before the investment matures.

Auto ladder (Superflex/Income Master only)
  • The interest rate is guaranteed for each specific term.
  • The minimum amount required to establish an auto ladder is $5,000.
  • The investment is split equally between each of the 1 to 5 year guaranteed interest investment terms.
  • Interest is calculated from the date the auto ladder is established.
  • The client will have 5 guaranteed interest investments all within the same plan.
  • As each guaranteed interest investment term matures, the balance will be automatically invested in a new 5-year guaranteed interest investment at the then current posted interest rate.
  • A confirmation notice will automatically be sent out when the new guaranteed interest investment has been made.

More information

Rate commitments

New applications - Rate commitments

Interpolated rates for guaranteed interest products

We "interpolate" interest rates for investment terms that lie between whole years. This interpolation will be calculated to the nearest .01%.

The formula for the interpolation is RATE = R1 + (#days/365) x (R2-R1) where:

  • R1 = rate for the next lowest even year
  • R2 = rate for the next highest even year
  • #days = number of days into the non-even year

e.g. If the 2-year rate is 5% and 3-year rate is 6%, then the rate for 2 years and 8 days (time between start date and end date) is: 5% + (8/365) x (6% - 5%) = 5.021918% so that client would receive 5.02%.

Note: For short-term GIC products, #days/365 in the above formula becomes the #days beyond the lower term for which a rate is stated divided by the number of days between the lower and higher terms (e.g. for a 35-day rate, use (35-30)/(60-30)).

The method of determining the start date remains unchanged:

  • with fund commitment - date of commitment
  • without fund commitment - date funds and/or forms are received at head office

General information

Joint ownerships
Superflex accumulation annuities
Important points to remember on jointly-owned Superflex:
  • Joint ownership is only permitted on non-registered policies.
  • Accumulation annuities require that an annuitant be named.
  • Laws that apply are the Insurance Acts in common-law provinces and the Civil Code in Quebec.
  • A contingent owner should be named for each owner.
Jointly-owned Superflex accumulation annuities

(applicable to new contracts issued December 2009 and forward)

  • Upon the death of an owner who is not the last surviving annuitant, the other joint owner will be considered to be the contingent owner (in Quebec, subrogated policyholder) of the deceased owner’s share of the contract, unless otherwise stated on the application.
  • A successor annuitant can be named. If a successor annuitant is named and is alive upon the death of the annuitant, the contract will continue after the death of the annuitant and no death benefit will be payable.
Information: What happens at death?
If the annuitant dies and no successor annuitant has been named:
  • The policy terminates – regardless of who the owner is.
  • The surviving joint owner(s) does/do not take over ownership of this policy and is/are not entitled to the death claim proceeds (unless they are also the named beneficiary, or no beneficiary has been named). The named beneficiary(ies) receive the death claim proceeds.
If the annuitant dies and a successor annuitant has been named:
  • If the annuitant is one of the joint owners, his or her share of the ownership will be transferred to the contingent owner for that share (or his or her estate if no contingent owner has been named) and the successor annuitant will become the annuitant.
  • New owner(s) can update successor annuitant and contingent owner and beneficiary if desired.
  • If the annuitant is not one of the joint owners, owners will remain unchanged and the successor annuitant will become the annuitant.
  • No death benefit is payable.
If the joint owner dies (and that joint owner is not the annuitant of the policy):
  • If a contingent owner who is the surviving joint owner has been named, the deceased joint owner's share of the policy would pass automatically to the surviving joint owner, resulting in the policy being owned 100% by the surviving owner.
  • If a contingent owner who was not one of the joint owners had been named, the deceased joint owner's share of the policy would pass automatically to the contingent owner, resulting in the policy being 50% owned by the surviving joint owner and 50% owned by the former contingent owner. (The owners may wish to appoint new contingent owners at this time.)
  • If no contingent owner has been named, the other joint owner will be considered to be the contingent owner (in Quebec, subrogated policyholder) of the deceased owner’s share of the contract, unless otherwise specified.
Please view this chart
for different scenarios that may apply to your client.
Jointly-owned Sun GIC Max or Guaranteed Investment Certificates (GICs)
Important points to remember on jointly-owned GIC products:
  • GIC products do not have an annuitant.
  • Joint ownership is only permitted on non-registered contracts.
  • Each applicant must sign the application.
  • Names and dates of birth are required for each applicant.
  • Cannot appoint a beneficiary on non-registered contracts. Beneficiary is the Estate.
  • Laws that apply are the Trust and Loan Companies Act and the Civil Code of Quebec.
  • A jointly-owned corporate account can be purchased.
Important points to consider
  • Joint owners can be either Joint tenants with right of survivorship (JTWROS) or Joint tenants in common (JTIC). Note: JWROS is not available in Quebec.
  • For JTWROS owners, the account is automatically transferred to the surviving owner and any interest credited to the account prior to death is reported to the deceased and the surviving owner. Any interest credited after the date of death is taxed to the surviving owner.
  • For JTIC, the account becomes the property of the Estate of the deceased and the surviving owner. Any interest credit prior to the death is taxed to the deceased and the surviving owner. Any interest credited after the date of death is taxed to the Estate of the deceased and the surviving owner. The executor of the estate would provide written direction as to who ownership of the deceased's share should pass to under the will. If the value of the deceased owner's products with us (including his or her share in this contract) is $100,000 or more, probate will be required.
Tax note

One of the taxable benefits of a jointly-owned policy, either AA or GIC product, is that the tax burden can be shared by the owners. The tax slip is issued to both owners, and it is between the clients and CRA, who claims the interest. CRA states that if Mr. & Mrs. Smith each put in 50% of the principal, then each owner should claim 50%.

Required minimums
Superflex accumulation annuity (Insurance GIC)
  • $1,000 for guaranteed investments (compound and annual interest)
  • $5,000 for annual and monthly interest payout guaranteed investments
  • $250 for daily interest investment
  • Pre-authorized chequing (PAC) available into daily interest - $50 monthly (not available on LIRA or locked-in RRSP)
  • Income master RRIF
    • Initial policy minimum $5,000
    • No pre-authorized chequing (PAC)
    • Payment minimum - If the full amount of the legislated minimum has not been met, the balance will be paid out December 31 each year
Minimum age requirement to purchase accumulation annuities (Insurance GIC)
  • RRSP /RRIF/TFSA: age 18
  • Non-registered: age 16 (in Quebec, age 18)
Sun GIC Max (Trust GIC, non-redeemable) / Guaranteed Investment Certificate (Trust GIC, redeemable)
  • $1,000 for guaranteed investments
  • $250 for daily interest investment
  • No pre-authorized chequing (PAC)
  • Short term investments are available (< 1 yr)
  • RRIF registration
    • Initial policy minimum $5,000
    • Payment minimum - If the full amount of the legislated minimum has not been met, the balance will be paid out December 31 each year
Minimum age requirements to purchase Sun Life Trust GIC products (all registration types)
Province Age (years)

British Columbia

19

Alberta

18

Saskatchewan

18

Manitoba

18

Ontario

18

Quebec

18

New Brunswick

19

Prince Edward Island

18

Nova Scotia

19

Newfoundland and Labrador

19

Yukon Territory

19

Northwest Territory

19

Nunavut

19

Withdrawals
On guaranteed interest investments, early withdrawals are not permitted. Withdrawals can be made any time from the daily interest investment without a market value adjustment (MVA).
  • For monthly or annual interest plans, interest can remain within the plan, be moved to another Sun Life Financial plan or paid by electronic funds transfer (EFT).
  • Full and partial withdrawals are permitted from the daily interest investment. If the contract is to be left in force, a minimum of $250 must be left in the contract.
  • Withdrawals can be paid by cheque or EFT.
  • Withdrawals from RRSP and RRIF are subject to withholding tax.
  • RRIF income payments are not considered withdrawals; they are free of MVA and are taken proportionally from all investments.
TFSA - Successor owner

The following information is designed to clarify how Sun Life Financial administers a successor owner on a TFSA policy.

Even though some applications do not specifically ask for a successor owner to be named, a TFSA policy allows the spouse the option of becoming the successor owner upon death of the owner.

TFSA regulations stipulate that only the spouse of an owner can become the successor owner (the survivor) of the TFSA policy.

In order to ensure that the spouse has the option of becoming the owner they must be the only beneficiary named on the policy. At death they will have the option of taking the value in cash or becoming the full owner of the policy who can exercise all of the ownership rights including the right to designate a beneficiary.

This applies to the following individual guaranteed TFSA policies available at Sun Life Financial:

  • AA TFSA
  • Superflex TFSA
  • Sun GIC Max TFSA*
  • SLF Trust GIC TFSA*

*NOTE: beneficiary designations and successor holder rights do not apply in the province of Quebec for these products.

TFSA - Quick tips
  • When transferring money from another institution watch out for transaction fees. Clients may want to check with the relinquishing institution to confirm whether or not a fee will apply.
  • Make sure you complete a transfer and not a withdrawal. If a withdrawal is completed, the contribution space will only return in the following calendar year and any deposit in the current year will count as a new deposit. Be sure to use Transfer registered assets from another company to a registered product (E63)
    when completing a TFSA transfer from another institution.
  • Clients are able to hold more than one account as long as they adhere to the annual contribution limit. So don’t forget to ask before they make a contribution to make sure they will not exceed their allowable contribution space.
  • Don’t forget unused contribution room from previous years can be carried forward and used in future years.
  • Maximize household deposits - spouses can give each other money to contribute to each other’s TFSA without affecting their contribution room.
  • In a province where the legal age to enter a contract is 19? The contribution room counts when they are 18, so they are eligible to deposit double in their first year.
  • If a spouse is named as the sole beneficiary of the TFSA the spouse has the option of becoming the sole survivor of the plan. This means that they become the planholder and may exercise all of the planholder rights including the right to designate a beneficiary.
  • The contribution to a TFSA must come from either owner. We will accept a cheque drawn on a joint bank account provided the TFSA owner is one of the bank account holders. For example, a client cannot deposit a cheque into his or her adult child’s TFSA or a cheque drawn on an individual’s company account cannot be deposited to their personal TFSA.

Tax and information on death

Death benefit
Sun GIC Max
  • pays the accumulated value, as of the date of death.
Guaranteed Investment Certificate (GIC)
  • pays the cash value as of the date of death if the policy was issued prior to November 25, 2013.
  • pays the accumulated value as of the date of death if the policy was issued on or after November 25, 2013.
Non registered
  • Beneficiary designations are not allowed.
  • For an individually held contract, the value (as above) will be paid to the owner's estate.
  • For a jointly-held contract with rights of survivorship, the GIC will become the sole property of the surviving owner. The surviving owner must provide proof of the death of the deceased owner. The rights of survivorship are not available in Quebec.
  • For a jointly-held contract with tenants in common, the GIC will become the property of the surviving owner and the estate of the deceased owner. The personal representative of the deceased owner must provide proof of death.
Registered Retirement Savings Plan (RRSP)
  • Beneficiary designations are allowed in all jurisdictions except Quebec.
  • Upon the death of the owner, the value (as above) will be paid to the named beneficiary or the owner's estate if no beneficiary designation has been made.
  • In Quebec the value (as above) will be paid to the estate of the deceased.
  • Proof of claim and the right to receive the benefit must be provided.
Registered Retirement Income Fund (RRIF)
  • Beneficiary designations are allowed in all jurisdictions except Quebec.
  • Upon the death of the owner, the value (as above) will be paid to the named beneficiary or the estate if no beneficiary designation has been made.
  • In Quebec the value (as above) will be paid to the estate of the deceased.
  • Proof of claim and the right to receive the benefit must be provided.
Successor contractholder

If the owner elected their spouse to be the successor contractholder, then upon their death the spouse will become the contractholder and will have all rights under the plan, including the right to designate a beneficiary.

Tax Free Savings Account (TFSA)
  • Beneficiary designations are allowed in all jurisdictions except Quebec.
  • Upon death the client's TFSA tax-free status ends and any investment growth or interest earned after the date of death is taxable. This tax will be due the end of the calendar year following the year of death.
Spouse named as sole beneficiary

If a spouse is named as the sole beneficiary they have the option of becoming the successor holder of the plan. This means they become the planholder and may exercise all of the planholder rights including the right to designate a beneficiary. In this case investment growth and interest earned after the date of death continue to be tax-free.

If the spouse chooses not to become the planholder they may choose to transfer the assets to their own TFSA. This transfer will not affect their contribution room as long as they elect this option before the end of the year following the year of death. They must complete and file a government prescribed form RC-240 - Designation of an exempt contribution - Tax-Free Saving Account (TFSA) within 30 days of the transfer of funds to their TFSA plan.

If they do not wish to transfer the assets or become the planholder, the proceeds can be paid to them in cash. Any interest earned on the funds after the date of death would be taxable to the surviving spouse in this case.

Spouse not named as sole beneficiary

If the spouse is not the sole beneficiary, the value of the plan on the date of death is paid to the beneficiary(ies) in a lump sum. Any interest earned after the date of death will be taxable to the beneficiary.

For Quebec or if no beneficiary is named, the value of the plan is payable to the planholder's estate. Tax is payable on interest earned after the date of death. This tax is reported by the original TFSA planholder's estate.
Taxation

Forms

Sun GIC Max/SLF Trust GIC – Reg/Non-reg


  • Note: Please obtain a supply of this application through . If you need to print a copy to open a new account, please ensure a copy of it and the attached contract are provided to the client. A copy should also be retained for advisor records. Saskatchewan advisors must be registered as a Deposit Agent with the province of Saskatchewan in order to sell this product.

Sun GIC Max/SLF Trust GIC – TFSA


  • Note: Please obtain a supply of this application through . If you need to print a copy to open a new account, please ensure a copy of it and the attached contract are provided to the client. A copy should also be retained for advisor records. Saskatchewan advisors must be registered as a Deposit Agent with the province of Saskatchewan in order to sell this product.