The deceased individual provided for the splitting of his TFSA equally between his wife (from whom he lived separate and apart) and his common-law partner. The definition of "exempt contribution" provides that the exempt contribution amount will be nil if there were two "survivors" receiving a TFSA payment – but s. (d)(iii) of "exempt contribution" grants discretion to the Minister to allow for an "exempt contribution", even if there was more than one survivor receiving amounts from the deceased's TFSA. When will this discretion be granted? CRA responded:
[W]here an individual, at the time of death, has both a spouse and a common-law partner who are "survivors" within the meaning of subsection 146.2(1) and payments are made to those two survivors in circumstances where the other conditions of the definition of "exempt contribution" are satisfied, a contribution of an amount greater than nil could generally be accorded by the Minister under the paragraph (d)(iii), provided that the total amount to be designated by the two survivors is less than or equal to (but not greater than) the amount that would otherwise qualify for designation as an "exempt contribution" under paragraph (d) of that definition, if there were only one survivor.
In the event that the aggregate amount that both survivors attempt to designate as an exempt contribution exceeds the maximum amount allowed, additional information may be required from either or both of the survivors in order for a reasonable designation to be allowed … [including] the conditions specified in the will … .