FAQs about BMO adviceDirect

1. Go to the BMO InvestorLine sign in page
2. Enter your Client ID, User Id or Account number and password to sign in
3. Select your phone number to verify your identity using a verification code that will be sent by text or automated voice call. If you do not have access to the phone associated with your account, call BMO InvestorLine at 1-844-274-3762 between 8 a.m. and 6 p.m. (ET), Monday to Friday. You will be given a code after verifying your identity.
4. Enter your verification code
5. Select ‘Add this device to my trusted device history’ if the device you are using is considered a trusted device

• RRIFs can be opened by clicking here.
• LIFs can be opened by clicking here.

• For LIFs and RRIFs, where Payment Information was not provided as part of the online application process, the Payment Information and Election to Use Spouse's Age form found here allows you to identify your payment preference and/or elect your spouse's age to use in the calculation of the yearly minimum payment.
• For LIFs, the Addendum for Locked-in Pension Transfers to a Life Income Fund (LIF) found here which is required to confirm you agree with all the terms set forth by the province that your LIF is governed by.
  • Please note, the required addendum will vary by the jurisdiction (i.e., province or federal) in which the account is registered.
• For RRIFs and LIFs, if you require a Trading Agent on your account, you must also complete the Authorized Trading Agent form. To include a Power of Attorney on your account, please call us or chat with us to learn more about what is required and how to add a Power of Attorney to your account.

• RRIFs – click here.
• LIFs – click here.
  • For LIFs, each province has its own specific minimum LIF withdrawal rate. This rate could also differ from the Federal rate. Please visit the provincial website where your plan is registered to for more information and to confirm. If you are unsure or are having difficulties please call or chat with us.

• Spousal RRIFs can be opened by clicking here.
  • Note: once you have completed the account opening process for your RRIF please call or chat with us and provide us with the account number so we can update to a spousal account.

• For LIFs and RRIFs, where Payment Information was not provided as part of the online application process, The Payment Information and Election to Use Spouse's Age form found here which allows you to identify your payment preference and/or elect your spouse's age to use in the calculation of the yearly minimum payment.
• For LIFs, the Addendum for Locked-in Pension Transfers to a Life Income Fund (LIF) found here which is required to confirm you agree with all the terms set forth by the province that your LIF is governed by.
• For RRIFs and LIFs, if you require a Trading Agent on your account, you must also complete the Authorized Trading Agent form. To include a Power of Attorney on your account, please call us or chat with us to learn more about what is required and how to add a Power of Attorney to your account.

For RRSP accounts, anyone can be named as beneficiary, however, only “qualified beneficiaries” are eligible for tax deferrals upon death of the account holder.

Qualified beneficiaries may be eligible to defer taxes by transferring the RRSP to their personal registered account(s), including their own RRSP or RRIF. For example, they can transfer the funds to their own RRSP or RRIF without having to pay immediate taxes. This implies that the transferred amount will continue to grow tax-deferred until it is withdrawn, at which point it will be taxed as income.

A qualified beneficiary can be:

1. A spouse or common-law partner;
2. A financially dependent child or grandchild (under 18); or
3. A physically or mentally impaired child or grandchild.

For additional information, please consult with a professional tax advisor.

A successor annuitant is an individual who can take ownership of the account (i.e., RRIF) and its assets as-is upon the death of the account holder without the need to transfer or sell any securities or funds to settle the account.

A successor holder is a spouse or common-law partner named to acquire all the rights as the account holder of a TFSA upon the death of the original account holder. The TFSA will continue in the spouse or common-law partner’s name.

The successor annuitant can assume the account (i.e., RRIF) and elect to continue receiving payments, and revoke or change the designation of beneficiaries after the account holder’s death. The successor annuitant has the option to receive payments automatically.

The successor holder will acquire all the rights under the account (i.e., TFSA) and continue the account in their own name without re-registration. The successor holder cannot manage, withdraw, or change the account without taking over the account after the death of the original account holder.

Designated beneficiary(ies) receive the proceeds of an account upon the death of the account holder.

Anyone can be designated as a beneficiary. This includes, but is not limited to, a spouse or common-law partner, a child or grandchild, a close friend or relative etc.

A successor holder can only be a spouse or common-law partner.

Only a spouse or common-law partner is eligible to be named as successor annuitant for an account.

Beneficiary and successor designations vary depending on the type of registered investment account. Review the following summary of how these designations apply:

Note: beneficiary refers to beneficiary for estates purposes. The beneficiaries for RESP accounts are treated separately and different rules may apply depending on the nature of the account.

Non-Registered accounts, like cash and margin accounts, do not typically offer beneficiary designations because the assets in non-registered accounts must go through the estate process. During this process, assets are distributed according to the account holder’s will or provincial succession laws, ensuring all debts and taxes are settled before being distributed to heirs.

Beneficiaries can not be designated and are not applicable in the following situations:

• Where the law of Quebec applies
• Non-registered accounts
• Certain trust accounts that require the distribution of assets
• Corporate accounts

Naming or designating a beneficiary on your account can help with:

• Ensuring proceeds are paid directly to the beneficiary, bypassing the estate settlement process.
• Deferring tax requirements on the account proceeds
• Annuity settlement options, providing scheduled payment for beneficiaries and quicker access to funds.
• Avoiding disputes and undue stress.
• Easing the burden on your executor and reducing risks.
• Reduce the time spent or bypass the probate process completely, saving time and cost.

Naming a successor holder on a TFSA has several advantages:

• Income earned in the TFSA account before and after the account holder’s death remains exempt from taxes.
• The successor holder gains full ownership of the TFSA account after the account holder’s passing.
• The successor holder is not required to fully transfer the funds out of the account.
• The TFSA contribution room of the successor holder remains unaffected.

Designating a successor annuitant can assist with:

• Allowing the successor annuitant to take full ownership as-is or transfer to their personal account.
• Avoiding probate and the need to wait for the full estate settlement.
• Saving on legal fees and deferring taxes.
• Saving time and reducing stress for loved ones.

When naming a beneficiary, consider the following:

• Different account types (e.g., RRSP, TFSA, RRIF) have specific rules and regulations regarding beneficiary designations.
• Provincial and/or federal laws (i.e., where the law of Quebec applies, designating a beneficiary is not applicable).
• The current financial situation of the individual(s) you are designating as a beneficiary(ies), including potential tax implications.
• Identifying how account proceeds should be divided among the beneficiaries if more than one.
• Naming contingent beneficiaries.
• Planning for regular review and update of beneficiary designations to reflect important life milestones or changes.

If you name a beneficiary and do not name a successor holder (i.e., for a TFSA) or successor annuitant (i.e., for a RRIF), the assets in your account will be transferred to the beneficiary’s account but may be subject to tax.

If you name a successor holder (for TFSA) or successor annuitant (for RRIF) but do not name a beneficiary, the successor will take over your account upon death.

• For TFSAs, the account may keep its tax-free status without affecting their TFSA contribution room.
• For RRIFs, the account will continue maintain its tax-deferred status, and taxes on withdrawals are deferred until they are withdrawn by the successor.

If you appoint a spouse or common law as a beneficiary, your account will be closed upon your death, and the assets will be transferred directly to them. The beneficiary will not have the ability to take ownership of the account directly, nor will they be able to manage or change beneficiaries for the account. Instead, the assets will be transferred into an account in the beneficiary’s name, and they will have full control over the assets at that point, including the ability to manage, transfer, or withdraw them according to their own preferences.

If you appoint a spouse or common-law partner as both the successor holder or annuitant and beneficiary of an account, the successor designation takes precedence, and the individual will have ability to assume the account as-is.

If you do not designate a beneficiary for your RRSP, the assets of your RRSP will be included in your estate and distributed according to your will. If you have a will that specifies beneficiaries for your RRSP, the assets will be distributed as outlined in the will. However, the RRSP value will be considered as part of your estate and may be subject to taxes and potential probate fees. Additionally, the value of the account will be included in the final annual income of the account holder and may be subject to income taxes, unless it qualifies for a rollover to the surviving beneficiary.

If no successor holder or beneficiary is designated in your TFSA or will, the TFSA holdings will be directed to the deceased holder’s estate and distributed in accordance with the terms of the deceased holder’s will or provincial laws, whichever is applicable.

When a non-qualified beneficiary is designated in an RRSP, the value of the RRSP is included in the account holder’s final income tax return. This means the account holder’s estate will pay taxes on the value of the account and beneficiary will receive the remaining amount after taxes.

For additional information, please consult with a professional tax advisor.

If someone other than your spouse or common-law partner is named as the beneficiary of your TFSA, the TFSA will not automatically transfer to the beneficiary. Instead, the TFSA will be included in your estate and will be subject to probate. The fair market value of the TFSA at the time of your death will be considered as part of your estate, and the beneficiary will receive the value of the TFSA. This means that the assets transferred may be subject to tax on any income or gains earned after the account holder’s passing.

For TFSAs, the successor holder takes precedence and will become the new account holder after the passing of the original account holder. The TFSA will continue to be managed as it was before the passing of the original account holder, but in the name of the successor holder. In case the successor holder is not available to assume the account, beneficiary designation(s) will apply.

For RRIFs, the successor annuitant takes precedence, and they will take control of the account. This means, the successor annuitant will have access to manage the account. In case the successor annuitant is not available to assume the account, the beneficiary designation will apply.

To designate beneficiaries on your account, you can designate up to three (3) beneficiaries and/or three (3) contingent beneficiaries per form. If you require more than three (3) beneficiaries and/or contingent beneficiaries, you can do so by completing multiple forms.

When multiple beneficiaries are designated, you also can allot specific percentages, if they add up to 100% of the proceeds, to each beneficiary.

Note: there is no limit to the number of beneficiaries you can designate on your account.

Upon the owner’s death, the beneficiary of the TFSA account will receive the funds from the owner’s TFSA account tax-free. However, any income earned in the deceased account holder’s TFSA after death is subject to taxes. Lastly, the assets do not have to be transferred to another TFSA account, but if they are, the owner’s TFSA account will be closed.

After the account holder passes away, the successor annuitant has the option to:

• Receive the entire balance of the account as a lump sum payment, taxed as income in the year it is received.
• Elect to receive periodic payment over a specified period, including minimum annual withdrawal requirements.
• Transfer the funds to their own RRIF or roll the RRIF investments into their RRSP without affecting their contribution room and annual minimum withdrawals.
• Defer receiving funds until a later date, depending on the specific terms of the account. This may include continuing the RRIF in the Successor Annuitant’s name.

The beneficiary designation of an account does not automatically transfer to another account. You are required to make your designation again when assets are transferred from RRSP or LIRA account.

Probate is the legal process of validating and distributing the assets of a deceased person. This often involves validating the authenticity of the will in court, paying debts and taxes, locating, and transferring the assets to the beneficiaries. Typically, assets with named beneficiaries bypass the probate process, allowing for a quicker, stress free, and more direct transfer.

You don’t have to wait until your elder years or if you are faced with a life-changing event to start your estate and legacy planning.

It is essential to update your plans when significant events, such as marriage, divorce, the birth of a child, or death of a close relative occur.

For registered accounts, you can view the beneficiary/successor designations for your account on your monthly account statements under the section “Individuals related to your account”. If the beneficiary/successor information for your account was recently updated, this will reflect on the next monthly statement cycle.

Eligible stocks or trust units are deposited into your account upon receipt from the Canadian Depository for Securities (CDS). These securities will automatically appear in your account between 2 to 4 weeks from the dividend payment date.

To enroll your account or securities or change your current enrollment, log-in to your account on BMO Invest App or the BMO adviceDirect website and chat with us.

Note: The BMO adviceDirect Dividend Reinvestment Plan is only available to residents of Canada.

Note: changes to the eligibility, whether removal or addition of a security, can be made without notice.

There are two options available for enrolling in the DRIP plan:

1. You can enroll at the individual security level where eligible.
2. You can enroll all eligible securities at the account level. This enrolls all current (and future) eligible securities in the plan.

To enroll your account or securities or change your current enrollment, log-in to your account on BMO Invest App or the BMO adviceDirect website and chat with us.

Reinvested shares will appear in your account automatically upon receipt from the Canadian Depository for Securities. This can take between 2 to 4 weeks from the dividend payment date to be received.

Details, including the number, the price reinvested at, and the date of the shares received can be viewed by logging in to your BMO adviceDirect account on the BMO Invest app or through web browser and navigating to your Transaction History.

Any distributions which are eligible and reinvested will show under the column "Type" as "Reinvestment".

If cash from your dividend is not enough to purchase one full share(s), your account will be credited with the cash dividend amount.

There is no cost to enroll or make changes once enrolled in the DRIP.

For eligible shares received through the DRIP program, it can take between 2 to 4 weeks from the dividend payment date to be received from the Canadian Depository for Securities (CDS) and be deposited into your account.

Education Assistance Payments are used to finance eligible expenses associated with a beneficiary's post-secondary education. They are comprised of grants and/or income within the RESP.

The maximum EAP available for the first 13-weeks of post-secondary school enrollment is $8,000 for full-time studies and $4,000 for part-time studies.

EAP is a taxable payment and a T4A tax slip will be issued to the beneficiary for the payment amount. For Quebec residents, an additional tax slip, Releve 1 will also be issued.

Post-Secondary Education Capital withdrawals can be made for any reason and be paid to the plan subscriber, beneficiary, or education institution to finance eligible expenses associated with a beneficiary's post-secondary education.

These withdrawals are comprised of the capital/contributions made to the account and are non-taxable.

If the beneficiary decides not to pursue post-secondary education, the accumulated income or earnings in the RESP may be eligible for withdrawal by the subscriber, subject to certain conditions.

The subscriber of the RESP plan may be eligible to reduce the amount of tax payable on AIPs, up to a maximum of $50,000, by contributing to their RRSP account. Contribution amounts are subject to available contribution limits in the individuals RRSP.

If the RESP beneficiary(s) decide to not pursue post-secondary education, the contributions made by the plan subscriber can be returned. The returnable amounts are subject to repayment of any matching grants received in the plan.

Currently, the portions of the RESP account which are considered capital, income and/or grant are not viewable online.

Education Assistance Payments and Post-Secondary Education Capital (PSE) Withdrawals require proof of enrollment in a qualifying program.

To satisfy this requirement official documentation must be provided which uses the educational institution's letterhead or be readily identifiable as a document reproduced from the institution's secure student website. Examples include an enrolment letter, course confirmation, receipted invoice, tuition statement or any combination of these documents.

Letter of acceptance, offer of admission, and unpaid invoice are not acceptable for proof of enrolment. The student’s ceased/last date of enrolment indicated on the proof of enrolment must be within six-months from the date an EAP is requested.

Note: Letters provided must be signed and certified by the Office of the Registrar or department head. If a tuition statement is provided, proof of payment must be shown on the statement.

For family plans, you may be eligible to share grants and income across plan beneficiaries. This is subject to each beneficiary's maximum lifetime amounts.

For individual plans, any applicable grants held in the account would be returned to the government.

If none of the plan beneficiaries pursue post-secondary education, any applicable grants held in the account must be returned to the government.

The capital portion can be withdrawn by the subscriber tax-free through the Capital Withdrawal process.