February 2nd, 2009 by Questions
Is a clients TFSA & RRSP protected if they file for bankruptcy?
Posted from: Prince Edward Island
February 03, 2009 at 10:03 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
If a bankruptcy is filed a clients Tax Free Savings Account (TFSA) is not protected and would be liquidated by the trustee for the general benefit of the creditors.
As for RRSP’s this is a little more complicated as it is impacted by both provincial and federal legislation. While I cannot comment on the provincial legislation (you will meed to consult with a local trustee for that). As for the Federal legislation, all RRSP’s are exempt except for the contributions made in the 12 months prior to a bankruptcy.
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