Nicole Ewing

[music] >> Hello, I'm Anthony Okolie, sitting in for Greg Bonnell.

Welcome to MoneyTalk Live, brought to you by TD Direct Investing.

Every day, I'll be joined by guests from across TD, many of whom you'll only see here.

We're going to take you through what's moving the markets and answer your questions about investing.

Coming up on today's show, we will discuss what to keep in mind if you haven't filed your taxes yet or if you just got a refund with TD Wealth Nicole Ewing.

And in today's WebBroker education segment, Ryan Massad will show us how you can set up a watchlist and alert using the platform.

Here's how you get in touch with us.

Just email moneytalklive@td.com or fill out the viewer response box under the video player on WebBroker.

Before we get to all that and our guest of the day, let's get you an update on the markets.

We will start here in Canada with the TSX.

It did open up modestly higher in early trading.

Right now the TSX is up about .2%.

It has been driven by early gains in technology shares as investors await more corporate earnings and the US Federal Reserve's monetary policy decision. Some big movers earlier on was Shopify. Shopify stock is rising today, so off its earlier highs in the session. There were some positive comments from analysts this morning. The Canadian tech company is preparing to report earnings on May 8.

Currently, the stock is of just under 1%.

Now we will turn to take a look at Wall Street. We will start with the S&P 500, which is coming off its best week since November.

Currently, the S&P 500 is up just over 11.4.2 percent. Of course, corporate earnings season continues and we get quite a few earnings this week. Turning to the NASDAQ index, the tech heavy NASDAQ composite index is also trading a positive territory, it is .2% on what has been a mixed earnings season for the Magnificent Seven. This week we will hear from iPhone maker Apple and Amazon. The NASDAQ is up modestly .2%.

Taking a look at some of the big movers, Tesla is in the news today. Tesla shares are trading higher after the EV maker cleared a key hurdle for launching its full self-serving technology in China.

Right now, the stock is up a whopping 16.5% on that news today.

Some other big movers today is Biogen. A biotech company. Last week, they taught first-quarter profit expectations thanks to cost-cutting efforts and better-than-expected sales of its Alzheimer's drug. The stock is currently up 4.5%.

And that's a market update.

The deadline to file your taxes is fast approaching and joining us now is something to keep in mind if you still haven't filed his Nicole Ewing, Dir. of tax and estate planning at TD Wealth.

Thanks for joining us.

>> My pleasure, Anthony.

>> Walk us through the importance of filing before the tax deadline even at the filing isn't perfect.

>> Well, gosh.

This is a self reporting system, as you know. We are obligated to file our taxes.

To the extent we oh, it's very, very important that we pay on time.

I think of this as the carrot and the stick approach to ensuring that you are doing your filings on time and paying what you need to pay.

We think about it like this. If we are late, if we did not file on time and we owe taxes, we firstly have a 5% late filing penalty in addition to a 1% compounded daily up to 12 months of additional 1% interest on that. If you are a repeat offender in the last three years, so 21, 22, or 20, that jumps to 10% and 82% compounding interest extending into 20 months. It can get quite significant. In addition, you will have a 10% amount owing on taxes due, so any overdue amounts are going to be really hitting the pocketbook quite significant. There is a carrot.

There is the opportunity to get something from filing that you otherwise would not be entitled to.

For example, if you are receiving any sort of government benefits, you want to make sure that you are filing on time.

Otherwise, those might be stopped or delayed. Thinking here about the GST or the Canadian child benefit, for example, those might be impacted if you do not file on time.

And then we think about longer-term making sure that you get credit for those CPP years and your RRSP contributions that you're making, all of that really does require you to be filing a return.

There are significant and expensive consequences if you don't pay on time but also some benefits by ensuring you get it in on time.

>> You want to make sure that you get that done in time before the deadline.

Let's say we filed and we've received a tax refund. What should people be considering before spending a?

>> Question why you have that refund. For many people, is intentional, it's for savings.

The math doesn't work out and I should perhaps not be doing that interest-free loan to the government and paying too much in advance but for some people it works.

If that's intentional, it's all right. If it's not intentional, reflect back. Maybe there's a form you can file with your employers have different amounts withheld so that you are not making that interest-free loan.

I say that because when you have your taxes withheld, essentially the government has access to that money until you get a refund back.

If you are receiving your refund and is quite substantial, ask yourself why, but to utilize that most impact flee, think about your goals, think about what you are trying to achieve.

Perhaps you have some high interest debt that you could make a big impact on. That is going to be a top consideration.

But maximizing that value as well. If you have the opportunity to put that into investments, let's look at our registered plans, your TFSA, your first home savings account, your RRSP and ensure that that money is making the biggest impact that it can for you and those tax preferred accounts. If you max out all of those as well, perhaps you're looking at a holiday or additional savings for your nonregistered account, but you want to look at debt and maximizing our registered accounts.

>> Okay. Now, staying the taxes, the recent Canadian federal budget included some changes to the capital gains tax.

Walk us through what's changed.

>> Oh, gosh. It feels like everything changed overnight and we have been talking about the changes for a very long time but we have seen, these are proposed changes at this point, we still need to see the legislation which is making it a little bit challenging to really know how certain individuals are going to be impacted, how certain scenarios are going to play out.

But making some reasonable assumptions here, we know is that as of June 25, the inclusion rate for capital gains is going to change. For individuals, it will change on the amount in excess of $250,000 of realize gains, so we will have our 50% inclusion rate for individuals up to 250,000. Over that amount, it becomes two thirds. For corporations and trusts, that's going to be an immediate June 25 increase to the inclusion rate from 50% to 66.67%, so two thirds will be included and that could mean an immediate increase in the tax that would be payable in certain situations.

So there's a lot to be thinking about here, a lot of different factors that we are looking at, what are reasonable assumptions to make and comparing to what we would want to be doing before June 25 but also making sure that we are not just letting panic check in and that we are making an informed decision. I have seen some calculations online and different people saying the math works out a certain way.

It's really important to look into those assumptions and do that deep dive into what variables are they considering, are they reasonable and have they missed an important part of the analysis?

>> Great information at a great start to the discussion.

You will get your questions about tax and estate planning for Nicole Ewing in just a moment.

And a reminder that you can get in touch with us any time.

Just email moneytalklive@td.com or fill out the viewer response box under the video player on WebBroker.

Now, here's an update on the top stories in the business world today and the look at how the markets are trading.

Well, Tesla is moving close to ruling oh driver system features in China. The EV maker announced a deal with Chinese search giant Baidu to deploy mapping and navigation technology in China.

This high up with search giant came as musk made a surprise visit to Beijing on Sunday. Rolling out the technology in China could boosted subscription revenues and help differentiate his cars from its Chinese competitors. The partnership comes with Tesla facing falling sales amid greater competition.

Currently, the stock is trading up just over 16%. Meanwhile, investors are counting down to the Federal Reserve's policy decision at the end of its today meeting on Wednesday. While the central bank is expected to hold rates steady at a 23 year high, debate is raging over the timing and even likelihood of a cut in 2024. Last Friday, the Federal Reserve's preferred inflation gauge rose sharply get in March, forcing market participants to push back the bed for the first rate cut.

Turning to earnings news, dominoes reported a 22% jump in profits to nearly $16 million, topping Wall Street's estimates.

Revenue growth also surged for the second quarter in a row amid strong carryout and delivery orders, as well as greater US franchise royalties. The world's largest peace chain also repurchased $24 million worth of shares during the quarter. The stock is up 4 1/2%. Here's how the main benchmark indexes are trading.

The TSX Composite Index in Canada is up modestly about 45.4.2 percent.

Taking a look at the US where the S&P 500 that I mentioned is coming off a very strong week, it's up about 14.4.3 percent.

More earnings will be rolling out this weekend investors are looking ahead to the Federal Reserve decision on Wednesday.

All right, we are back with Nicole Ewing, take your questions about tax and estate planning.

The first question is on our ESP's for grandkids. I have open RESPs for all of my grandchildren and contribute to them regularly.

Would it also makes sense to open a joint account in their names to deposit birthday money for them and other things? Thanks for your question, Don.

>> Oh, Don!

There's a lot packed into this question.

So, fantastic that the RESPs are being contributed to. That's a really effective way of perceiving for the education of your grandchildren. You want to make sure any of that is coordinated with other RESPs that may have been open for them so their parents or other relatives that might've also open those, making sure that they are coordinated is really important to make sure we are not outside of our contribution amounts or withdrawal strategy. When it comes to opening a joint account, we will assume that the children are minors in this circumstance and we have to be very, very careful. We have seen in the last year or, the bare trust conversation, it brought people talking around the kitchen tables in a way we hadn't seen before.

That is also an opportunity for all of us to reflect on the inadvertent tax implications that might be created when we make joint accounts, particularly with minors.

Firstly, taxation, when a grandparent gives money to a minor child and invest in it, there's something called attribution rules that apply. Those attribution rules will attribute any income earned by a minor, whether that's in a joint account, and in trust account or the minors name if that's possible, that will all be attributed back to the gifting grandparent. There are some Canadian tax rules that apply, that certain types of income will be attributed back while others aren't, so again that's one thing that's not necessarily going to be contributed back. We want to be very careful. When you open these accounts jointly, you will also be thinking not only about the tax implications but potential creditor implications. If it's in your name jointly, it could potentially be hitting you, and it really does create a lot of questions about who actually owns this money and what happens.

If you were to pass away or become incapacitated, not able to make decisions regarding those accounts, who's going to step in and make those decisions? I will pause there because I could go on about joint accounts indefinitely but it's really joint accounts are not something to casually be used between a grandparent and grandchild, there are better ways of ensuring that that money is in their hands.

It's tax appropriately, set aside for them appropriately and they will have the access to it when they become 18.

>> A great way to kick off the questions.

As you mentioned, bare trust's have been in the news. We have another question on them today.

It is a recreational property co-owned with your adult children a bare trust under CRA rules?

>> These are really good questions because as we saw with a bare trust in terms of filing for your trust reporting rules, that was waived for 2023 so there's not the requirement to be filing. But there are other rules, for example the underused housing tax, that could also be applicable in this situation for bare trust's and so if a recreational property is owned, co-owned with adult children, yes, it very well could count as a bare trust for the purposes of either or whatever these filing rules, to be in the future or for the underused housing tax.

Essentially, a bare trust, as defined, would say that it is where one party has made the contribution, is the beneficial owner of the asset, is one who can essentially receive the proceeds, and then the other or others are on title for convenience purposes or for some other reason but are ultimately must follow the instructions of the beneficial owner, his cell when they say self or how much they say. In that situation, where we have a different beneficial owner then who is on title, the question must be asked: is this a bare trust? And if so, are there requirements to file the underused housing tax? And then keep your eye on future requirements that the CRA may come out with in terms of the stress filing rules because they are waived for 23 but we don't know what's going to happen for 24.

>> Very important information about bare trust's. We will move to the next question. This is on RIFF payments.

Should I transfer my wife shares held in her name to our joint account and absorb the capital gains to avoid paying more tax in the future when her RRIF payments commence?

>> A couple of points here. First when they say transfer the wife shares into your name, that's not actually how that would work out. So it depends.

As with every answer. It depends.

If you were to transfer assets that are solely in your wife's name into an account, whether it's joint or otherwise, the tax bill follows. So if it was in her name solely, even if it's transferred into a joint account with her and do you as joint account owners, the tax bill still follows her which is what I mentioned about attribution rules.

If she was the contributor of those funds, the tax liability follows her.

Simply moving it into a joint account does not allow for the splitting of the 50% and having it taxed otherwise. What could possibly do was allow for the income on income, which is not subject to the attribution rules. So if some income was being realized and then reinvested, that income would not be attributed back to her solely. But what I like here in the conversation, the thinking, is is there a way to more equalize the income that each of you will have in retirement in anticipating what the forest our RIF payments are going to be? Because it depends on what the value of the our RIF is. That will tell you the minimum amount that needs to be paid out.

There is some math that needs to be done there in terms of whether or not there should be some pre-taking of your RRSPs before it turns into an our RIF but making sure that the taxes and we are looking at whether or not that makes sense from a long-term, holistic perspective when you are including CPP, OAS and other incomes and then ultimately as will your goals.

>> As always, make sure you do your own research before making any investment decisions.

we will get back to your questions for Nicole Ewing on tax and estate planning in just a moment.

And a reminder that you can get in touch with us any time. Just email moneytalklive@td.com.

Now, let's get to today's educational segment.

If you want to keep track of what's happening with a certain stock, web program has tools that can help.

Ryan Massad, Senior client education instructor at TD Direct Investing has more.

>> So if you found a stock that you are looking for and you don't necessarily want to buy it right away, you can use the watchlist and the alerts feature in order to follow that stock and track it for a later date. Let's jump into a broker and see how that works.

So as you can see, I've got TD Bank up here and if I click on the buy button, it'll take me right into the buy screen but I don't want to do that yet.

I've looked at the stock, I really enjoy it but I want to follow it for a later date. Some went to click on add to watchlist.

And I'm going to choose the watchlist on which to add this. I can hit 06 and then go to my watchlist and see what this looks like.

On my watchlist and if I go to the 061 that I added this TD Bank, we can now see TD Bank. So you don't have to go and search for it next time. It's already on my list and the Company as may be another stock. It gives me some of the basic ideas of variables, the criteria of the stock, the highs, the range, I click on the fundamentals tab and I can get some more detail, maybe market capitalization, P/E ratio. But another interesting thing I can do here is click on the tracker button and I can actually add a cost to it. I can make what used to be called a paper trade.

So if I click on this average cost and then I add in average cost, so let's say I add $80 per share and I add a position of 200 shares and I click save, it will track the position or the stock price and it will also track the position that I've created here. Here I've got 200 and an average cost of $80.

See there is a profit or gain loss being tracked.

This is a way to track an idea that you have with a position with the amount of money might want to invest. And he will also give you a total of the portfolio, the fake portfolio that I have. So a great way to track something for later on.

Now if I want to track and be more precise in my tracking, there's something I really want to watch for, I'm going to look for the alert. It's right next to the stock quote.

I'm going to click on set alerts. Here, I'm going to.

. . Perhaps you want to know when a price drops below a certain point, perhaps I want to know when the price hits a 52-week high or low or it's changed from a previous quote.

I've also got events here on this events tab and that will allow me to be advised when there is a dividend announcement or an earnings announcement.

So I'm more precise in my tracking when I use the alerts.

So whether I use the alerts or whether I use a watchlist, it's a great way to track a stock or perhaps a future purchase.

>> Our thanks to Ryan Massad, Senior client education instructor at TD Direct Investing. And for more educational resources, you can check out the learning centre on web broker or use this QR code to navigate to TD Direct Investing's YouTube page where there are more informative videos. Now before you bite your questions about tax and estate planning for Nicole Ewing, a reminder of how you can get in touch with us.

>> Do you have a question about investing or what's driving the markets? Our guests are eager to hear what's on your mind, so send us your questions.

There are two ways you can get in touch with us.

You can send us an email anytime at moneytalklive@td.com or you can use the question box right below the screen here on WebBroker. Just write in your question and hit send.

We'll see if one of our guests can get you the answer right here at MoneyTalk Live.

>> We are back with Nicole Ewing taking your questions are tax and estate planning. Our next fear question is on capital gain. If again is capital gain or income, does it not depend on the election one does in the first year which stays permanently? Nicole, what are your thoughts on that?

>> That's an interesting question because were tax purposes, we are not really in a position where we choose whether something is a capital gain or income. I'll give you a couple different ways to answer the question. Firstly, if the individual is a business owner and running a business, and sometimes there is a distinction between whether something is inventory and a part of the business or not and that you would want to be at recording it appropriately and indicating whether or not it's inventory or not. For an individual who has an asset, it's really a question of whether or not, how you are engaging with that asset, whether or not it's business income or a capital gain and again, that's not based on an election that is made, that is based on whether or not the facts and circumstances, the manner in which you are engaging with that property, becomes, makes it into business income as opposed to a capital gain.

So there's not really an election that one makes and really, there are times when a capital property might have a change of use, so think of a property that is a recreational property and then becomes a rental property, there was a point in time where there was a change of use and the tax treatment might change as well or it was your principal residence and becomes a rental property or a recreational property and it will no longer have the principal property exemption applicable to it. There are circumstances where the nature of taxation could change depending on how you engage with the asset but otherwise it's not the sort of election that one makes in the first year or at any time in the future.

>> We will move on to the next fear question. This has come up a lot, making that distinction between trader versus investor. How does CRA decide if you qualify as a trader rather than as a passive investor?

>> This is really tough because it comes down to her intent. It depends on how you are engaging with the asset and portfolio and there's not a hard and fast rule that we can glom onto to say X number of trades is okay or the trades over a certain period of time or you have to hold it over a certain period of business days in terms of how it's regarded for these purposes, it's really the overall picture that the CRA is going to look at.

So how do you engage with your account? Is it done as though you really are in the business of making investment trades?

How long are you holding, are you turning quickly or are you buying and holding for a prolonged period of time? How many trades are you making? Are you holding yourself out as an expert in the space?

Are you in the business of giving investment advice or wealth planning advice to somebody?

Again, it's not really a hard and fast rule that we can communicate clearly but there are a number of factors that, on the whole, will determine whether or not the CRA regard something as regular trading activity versus, pardon me, regular investment activity versus trading, in the business of trading.

>> You outlined a lot of questions that people should be asking when they are trying to make that distinction.

>> There is a good resource online for those who really, if you are wondering whether this is you, firstly, speak to a professional and get some guidance there as well but the CRA does have some really good, informative pieces, tactical pieces, bulletins, circulars available online on the CRA website and elsewhere that will go into that deep dives of what the points are that you're going to be looking at so if you are really looking for some yeses and nose, that's really going to find that.

The information is available.

>> Great information there. We will move to the next question on the OAS clawback.

I am in the process of drawing down our RRSPs to avoid the OAS clawback later on.

Does your guest have any thoughts on do's and don'ts?

>> Yeah, those so firstly I would say run the numbers, do model out what your circumstances would be by pulling down on your RRSPs or allowing the funds to continue to grow in a tax-sheltered environment or prolonged period of time.

We often hear the thought about pulling down on your registered accounts, if you don't have that forced our RIF payment that will push you into a higher bracket and will give you the OAS, but make sure that you are thinking about longevity, how long you are before retirement how long you expect to be in retirement, your other income sources as well and not just looking at, it's not a straight map equation there. There are going to be other factors to consider. So be cautious when you are pulling out of your registered accounts because that's fully taxable in your income in the year that you withdraw it and if you don't have another tax-sheltered environment for it to go to, for example your TFSAs, then it's going to be taxable in your nonregistered accounts which might offset any benefit that you might get of not having the OAS clawback. As much as we talk about OAS clawback entities a challenging conversation to have, in other circumstances, we don't want to give up tremendous opportunity for gains or income simply by trying to avoid any withdrawal at all of the OAS. So sometimes in a way a clawback on our OAS means that we are just really in a very strong financial position and there might be reasons for allowing our investments to grow.

>> Okay. Nicole, at the top of the show, you touched on joint accounting. This question is on income splitting. For joint accounts, what is the CRA's rule for split a percentage of income for the account holders?

>> The simple answer is that taxation will follow the contribution.

If you have joint owners on an account, the money that was contributed, the individual who treated that, is the one who is responsible for the tax.

So for example, if I have $100,000, I create a joint account with my spouse, that full hundred thousand dollars as income that is earned on the 100,000 will be taxed in my hands. Now I do have the opportunity over time to perhaps gift some of this to my spouse but gifting as well is caught by the attribution rules. So am I gifting my spouse the $50,000, that income will not $50,000 will continue to be taxed in my hand but any income on the income can then be taxed in the hands of my spouse.

So we do need to sort of follow the tracing of where the funds came from.

There are certain presumptions that will apply as well with respect to who actually owns the property and whether or not they have a beneficial interest in it and those rules are different as well for spouses than they would be for any other joint account holder, so adult children for example, your parents, the presumption is that it is being held in trust, they have no beneficial interest in it whereas for spouses the perspective is that it was a gift but the original income is still going to be taxed in the hands of the contributor.

>> Important information on joint accounts. We will get back your questions for Nicole Ewing on tax and estate planning in just a moment.

And a reminder that you can get in touch with us at any time.

>> Do you have a question about investing or what's driving the markets?

Our guests are eager to hear what's on your mind, so send us your questions.

There are two ways you can get in touch with us.

You can send us an email anytime at moneytalklive@td.com or you can use the question box right below the screen here on WebBroker. Just write in your question and hit send.

We'll see if one of our guests can get you the answer right here at MoneyTalk Live.

>> We are having a look at TD's Advanced Dashboard, platform designed for active traders available through TD Direct Investing and looking at the map function here which gives you a view of the market movers on the TSX by price and volume, you take a look here, you can see on the top left corner, some of the gold miners are getting bids, Barrick Gold, Teck Resources, even Nutrien is getting a bit as well.

We are seeing First Quantum, in the red.

We are also seeing some green on the screen, Manulife financial is seeing some bidding as well. Let's take a look at the US market, particularly the S&P 100.

And of course, Tesla, as I mentioned, seeing some strong bidding today. The stock is up more than 17%.

Tesla announced a deal with a Chinese search giants on its EVs so that is seeing some strong bids there. The stock is rocketing after local Chinese authorities removed restrictions on its cars.

Some telecom names are seeing some kids today.

Actually Google and some other make seven stocks are down a bit and we have seen makes earnings for the Magnificent Seven.

Apple is up a little bit and will be reporting as earnings later this week.

Now, we are back with Nicole Ewing from TD wealth within a few her question. This is on the LIRA to LIF. When you decide to convert a LIRA to a LIF and have the option to take up to 50% out in a one-time withdrawal and pay the appropriate tax, can a portion of the tax be recovered?

This is based on a person having a taxable income below $45,000.

Nicole, I'm not sure if you got all of that… >> I always pause when thinking about liras and the options that are available because they really do vary quite significantly by size.

Firstly, that's the number one question.

What are the rules of your province say you can do with respect to this? It can be quite different. If you are in a province that allows you to take that 50% out, you might have the opportunity to put that into an RRSP, to have those funds transferred over and then it would be subject to tax.

If it is income that comes into your hands, we would generally be thinking about other taxable income, the other credits and deductions that are available to individuals. Some of those are different provincially as well.

We have federal rebates and other amounts that can reduce income depending on whether you are making charitable donations and there's a lot that goes into whether or not credits and deductions are available to you and they would be relevant to this analysis.

Firstly look at what the provinces rules allow you to do and then look from there with the options might be.

>> I'm glad you are answering the questions instead of me.

Next to her question.

This is on and our RIF beneficiary. I put my child as a beneficiary on my RIF F.

When I die, will the tax be payable on my estate or the beneficiary?

>> If you name a beneficiary, let's say it's not your spouse, but if you name a beneficiary on account, whether it's your RESP or your RIF F or TFSA or otherwise, the income or the amount can flow outside of your account and go directly into the beneficiary's hands. He doesn't change the tax treatment. In the situation, if you named your child is the beneficiary of your RIF, it is your estate that would be liable for the taxation on the RIF. The challenge comes when what if the RIF is the only asset that your estate has and there is no other liquidity to pay the tax? Keeping in mind, fully included… If you have an RIF of $200,000, that's included in your income and debts and subjective marginal rates. That can be a pretty big tax bill.

We want to be thinking that there is are there other ways of covering the tax bill?

If not, the CRA will come after the beneficiary. They don't simply allow, because there was a designation made, that neither the estate nor the beneficiary needs to pay. No, they will go up to the beneficiary. The challenge comes when there is more than one beneficiary and I've seen this, it's an unfortunate situation, where you may have more than one beneficiary named.

Everyone receives their fine, Spencer, pays down the mortgage, does whatever they need to do, then the CRA comes after the beneficiaries of the tax bill because the estate couldn't pay for it and they do not need to go up to the beneficiaries equally. They will only be able to go after the amount that the beneficiary actually received but there would be no problem taking 100% from one beneficiary who is easier to get that money from them for them to be trying to get 50% or one third from multiple beneficiaries.

They will go for the path of least resistance to pay that bill.

Sometimes we do say that having the estate to the beneficiaries the most appropriate thing to do because it allows for the tax to be paid and the proceeds to be distributed out to the individual beneficiaries after all of the expenses of the estate have otherwise been addressed.

>> We will soon beneficiaries. This is on TFSA or RRIF beneficiary. Can you tell me if there any disadvantages of naming your spouse is a designated successor or a designated annuitant for your TFSA and RIF accounts versus just the beneficiary?

>> I will say that generally speaking, no, there's really not a disadvantage here because what this is allowing you to do is to essentially continue the account in the hands of the surviving spouse and not having to deal with the after death income that may have been received.

For example, if you name them as beneficiary, your spouse would be receiving, the date of death, there would be the tax bill, and then the amount that they would receive at a certain point. If there is a gain between the tax bill date and the date that they receive their money, the date of disposition and the date they receive their money, that would be subject to tax. If you are the successor annuitant or the successor holder of the account, you essentially step into the shoes of that individual and everything continues on. There is some question with respect to the age of spouses when it comes to our RIF that you might want to look into. I can see accessing the, depending on the ages, if there is a big age gap between spouses, there might be a reason why you would prefer to take the beneficiary as opposed to the successor outcomes but you can buy a large, if you are named as beneficiary, you can elect into the treatment of successor holder and their simplex ability there.

So not really a downside, certainly avoids some challenges of additional paperwork that may need to be completed if they are named as a beneficiary and where there is a significant age gap, there should be some additional analysis.

>> Nicole, great insights as always.

Thanks very much for joining us.

>> My pleasure.

>> Our thanks to Nicole Ewing, director of tax and estate planning a TD Wealth. As always, make sure you do your own research before making any investment decisions.

if we didn't have the time to get to your questions today, we will try to get them into upcoming shows.

Stay tuned for Tuesday show, James Hunter, VP and portfolio manager with TD Asset Management will be our guest taking your questions about preferred shares.

And a reminder that you get a head start.

Just email moneytalklive@td.com. That's all for our show today.

Take care. We will see you back here tomorrow.

[music]