Although optional, you can designate beneficiaries on your registered investment accounts to retain more of your assets, protect your estate and leave a lasting legacy for your family, as well as ensure a smooth succession of your wealth.
Failure to appoint beneficiaries to your investment accounts may lead to assets being handled by the probate system - which is both expensive and time-consuming.
Please note that in the case of the account holder’s death, if you appoint a minor as a beneficiary, such as in the cases of RESP accounts, the minor should receive the proceeds once they turn the age of majority in their province or territory. In these cases, we might recommend contacting a legal and/or tax professional in your province/territory before naming a minor as a beneficiary. Depending on the province/territory, there may be some nuances as to how the probate process works.
What is a successor/annuitant?
A successor annuitant/holder becomes the new owner of your registered accounts after you pass away. Only your spouse or common-law partner can be named a successor annuitant for your registered accounts. Please note that you cannot name your spouse or common-law partner as both your successor and beneficiary for the same account.
Does my beneficiary need to have a SIN?
Since a Canadian Social Insurance Number (SIN) is not required to designate someone as a beneficiary, you may add anyone residing outside Canada as a beneficiary. However, it is advisable to include one where applicable as it makes the transfer of assets more efficient.
How many beneficiaries can I designate?
Typically, you can have one or more beneficiaries per account type.
TFSAs or RRIFs can have one successor.
Please note that currently, Quebec residents cannot appoint beneficiaries, successor annuitants, or successor holders on their registered investment accounts through form-based declarations; but, rather have to do so through a will. We might recommend contacting a legal professional for more information with doing so.