Beneficiary Designations: RRSPs, TFSAs and Life Insurance

RRSPs, RRIFs, TFSAs, pensions and life insurance often allow you to name a beneficiary who receives the money directly when you die.

How designations work

• You name a beneficiary on the plan or policy, or in your will for some plans.
• On death, the plan or insurer pays the beneficiary directly.
• The money usually doesn't form part of your estate.

Benefits

• Faster payment to the beneficiary.
• No estate administration tax on those assets in many cases.
• Life insurance paid to a named beneficiary is generally protected from creditors of the estate.

Traps to avoid

• Out-of-date designations: an ex-spouse may still be named.
• Minor children: money can't be paid directly to a minor; consider a trustee.
• Taxes: an RRSP or RRIF's tax bill may fall on the estate while the money goes to the beneficiary.
• Inconsistent wills: a later will can change some designations, which can cause disputes.

Spouses

Naming a spouse can allow a tax-deferred rollover of RRSPs and RRIFs.

Review regularly

Check your designations whenever your life changes.

Sources

• Succession Law Reform Act, Part III (designations)
• Insurance Act (Ontario)

Read next: Dependant Support Claims Against an Estate in Ontario

General Ontario legal information, not legal advice for your matter, and reading it does not create a retainer. Sources checked 16 October 2026: check the current law, forms and dates before you act.

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This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.