What are beneficiaries? Why should I consider adding them?
Although optional, you can designate beneficiaries on both your RRSP and TFSA 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.
TFSAs and RRSPs can have one or more beneficiaries.
TFSAs can also have one success holder.
Beneficiaries do not need to be appointed for Personal (non-registered) accounts.
Please note that currently, Quebec residents cannot appoint beneficiaries on their investment accounts but, rather have to do so through a will. To learn more, please feel free to reach out the OneVest support team here.
Who is a success holder and how are they different from a beneficiary?
Successor annuitant/holder is when your beneficiary 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 (only applicable to TFSA and RRIF accounts).
Please note that you can’t name your spouse or common-law partner as both your successor and beneficiary for the same account.
Can I add beneficiaries only once?
You can add and update beneficiaries at any time.
Can I add a beneficiary that resides outside of Canada?
Since a Canadian 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 do I add a beneficiary to my RRSP and/or TFSA account(s)?
To add a beneficiary to your RRSP and/or TFSA account(s), please:
- Reach out to the OneVest support team to make a request to add a beneficiary to either your RRSP and/or TFSA account(s).
- Upon review of your profile, the OneVest support team will share a Registered Plan Beneficiary Designation Form for you to complete, and email back at your earliest convenience.
Please ensure to have the following information ready:
Legal name of the beneficiary
Allocation of assets (total must add up to 100%)
Relationship to the beneficiary
Address (only if adding a success holder)
What happens after I request to add a beneficiary?
The OneVest support team will collect your beneficiary information, review it for accuracy, and then process it to our custodian institution; which will then update their records.
Should your form be filled out incorrectly or inaccurately, our support team may ask you to re-fill the form.
Once OneVest confirms the form is filled out correctly and sends it for processing, you shouldn't expect further updates. While rare, our custodian institution may ask for additional information, in which case our support team will let you know.
Otherwise, you're all set!