Does a TFSA Pass Through a Will or Probate in Canada?

This answer covers Canadian federal tax law, which applies in every province.

Sometimes a TFSA goes through your will and sometimes it does not, depending on whether a successor holder or beneficiary is named. If neither is named, the TFSA assets are directed to the deceased holder's estate and the will governs distribution.

A successor holder is a surviving spouse or common-law partner named in the TFSA contract or in the will, and on the holder's death they immediately become the new holder and take ownership of the TFSA. Anyone else you name, such as a child, is a designated beneficiary who receives the account's value rather than taking over the account. To set or change a designation, the holder contacts the TFSA issuer. Quebec does not recognize the successor holder designation for TFSAs.

How probate applies to a particular TFSA depends on your own circumstances, and it is worth confirming with a lawyer or accountant. That depends on the issuer's requirements, how the designation was made and the rules where you live, so confirm it with the issuer or a lawyer. Keeping your designation current is the practical way to avoid surprises.