TFSA & RRSP Protection
February 2nd, 2009 by Questions
Is a clients TFSA & RRSP protected if they file for bankruptcy?
Posted from: Prince Edward Island
One Response to “TFSA & RRSP Protection”
Please post a follow up comment below:
(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)
You must be logged in to post a comment.
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.