Would a transfer of funds from a deceased holder's TFSA to the holder's surviving spouse in order to pay a specific legacy satisfy para. (b) of the definition for "exempt contribution," even though under the will the executor has the discretion as to which estate property will be used to satisfy the specific legacies? CRA responded:
Taking into account the words "directly or indirectly", a particular payment may qualify as a survivor payment [as defined in para. (b) of “exempt contribution”] whether the money is paid directly to the survivor under the arrangement or it is first paid to the executor of an estate before being paid by the executor to the survivor.
After referencing s. 248(8)(a), CRA stated:
The fact that the will provides for legacy of a sum of money to the surviving spouse rather than specifically providing a legacy of all or part of the TFSA would not in itself prevent the payment from being a survivor's payment for the purposes of the definition of "exempt contribution," to the extent that the executor has the authority under the will to satisfy the legacy out of the money that was held under the TFSA.