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In all provinces except Quebec, registered accounts — Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs) and Tax-Free Savings Accounts (TFSAs) — allow you to name a beneficiary (or beneficiaries). In Quebec, beneficiaries can only be named in a will.
So, just who can you name as your beneficiary (or beneficiaries)? You have a number of options for your registered accounts.
Beneficiary Choices and Flexibility
- You can name anyone as a beneficiary, such as your spouse/partner or a dependent child or grandchild.
- You can name multiple beneficiaries and allot percentages of your assets to each.
- You can name a contingent beneficiary (or a person next in line) to receive the funds in your account if the primary beneficiary can't.
Options for Married and Common-Law Partners
- You can name your spouse/partner as successor holder (TFSA) or successor annuitant (RRIF) rather than a beneficiary.
Some Key Information
- A successor annuitant or successor holder can only be your spouse or common-law partner.
- You cannot name a beneficiary or successor holder/annuitant on non-registered accounts.
- You can change your beneficiaries any time by notifying your financial institution(s) or estate lawyer. (In British Columbia, the exception is an irrevocable beneficiary, who can only be changed with his or her consent.)
- In Quebec, beneficiaries can only be named in a will.
- When you name your spouse or common-law partner, or a financially dependent child or grandchild, as the beneficiary of your RRSP or RRIF (and certain other criteria are met), the proceeds of the plan do not have to be reported as income on your final tax return.
Ready to Designate a Beneficiary or Make a Change?
To designate or change a beneficiary/successor holder, visit Beneficiaries or the Forms & Agreements page.
The information provided in this article is for general purposes only and does not constitute personal financial advice. Please consult with your own professional advisor to discuss your specific financial and tax needs.
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