A beneficiary designation is an instruction on a registered account, pension or insurance policy that says who receives it when you die. For those assets it takes the place of the will: the money goes straight to the person named, without passing through the estate, which usually keeps it out of probate. This guide covers designations across every type of account. It is part of our estate planning guide; the account-specific rules are on each account’s own page, linked below.
Which accounts take a designation
| Account type | Designation | Passes outside the estate? |
|---|---|---|
| RRSP | A beneficiary, at the financial institution | Yes |
| RRIF | A successor annuitant (a spouse) or a beneficiary | Yes |
| TFSA | A successor holder (a spouse) or a beneficiary | Yes |
| FHSA | A successor holder or a beneficiary | Yes |
| Group RRSP or defined contribution pension | Through the plan administrator | Yes |
| Defined benefit pension | Survivor benefits under the plan terms and pension law; a beneficiary for some benefits | Yes, under the plan terms |
| Individual and group life insurance | Through the insurer or employer | Yes |
| Non-registered accounts | Usually no designation (joint ownership or the will instead) | No |
In Quebec, designations are limited. For TFSAs the CRA says: Quebec does not recognize a designated beneficiary on a TFSA that is a deposit or an arrangement in trust; TFSA annuity contracts are the exception. Quebec does not recognize successor holder designations for TFSAs, except for TFSA annuity contracts. Insurance and annuity contracts are where Quebec residents can still name a beneficiary; a TFSA held as a deposit or in trust goes to the estate and follows the will.
RRSPs and RRIFs
At death, an RRSP is taxed on the final return unless it goes to a qualifying survivor: a spouse or common-law partner (who can roll it into their own RRIF or an annuity at any age, or into their own RRSP if 71 or younger at the end of that year), a financially dependent child or grandchild with an impairment (RRSP, RRIF or RDSP), or another financially dependent child or grandchild (an annuity to age 18).A spouse can be named either beneficiary or (on a RRIF) successor annuitant, in which case the RRIF simply continues in the spouse’s name. Naming an adult child who isn’t financially dependent on you means the full value is taxed on the deceased’s final return, while the money goes to the child; who pays that tax, and the alternative of naming the estate, are compared in RRSP beneficiary vs estate. The full rules are in what happens to an RRSP when you die. An RRSP can also roll to a disabled child’s RDSP in some cases.
TFSAs
Only a spouse or common-law partner can be named successor holder (Quebec doesn't recognize the designation, except for TFSA annuity contracts); they become the new holder of the same TFSA, which stays tax-free, without using their own contribution room. A designated beneficiary (anyone you name; Quebec doesn't recognize the designation on deposit or trust TFSAs) receives the TFSA's value at death tax-free; earnings after the date of death are taxable to them. A surviving spouse or partner named as beneficiary may be able to contribute the payment to their own TFSA as an exempt contribution. For a spouse, the successor holder route is usually the simpler one.
Naming a person vs naming your estate
Naming “my estate” sends the account through the will: it is counted in the estate for probate fees, is available to the estate’s creditors, and is distributed under the will. Naming a person avoids those steps but means the will can’t redirect the money. Some people name the estate deliberately (to fund debts or taxes, or to hold money for a minor in a trust set up by the will); that trade-off is in RRSP beneficiary vs estate, and the probate side in avoiding probate on registered accounts.
Minor children
A minor generally can’t receive the money directly. If a minor is named, a small payout may go to the parent the child lives with, and larger amounts are usually held for the child under provincial rules (for example by the court, a public guardian or a court-appointed guardian) and handed over at the age of majority. Parents who want someone they choose to manage it, or the money held to a later age, usually name a trustee for the minor on the designation (where the institution allows it) or leave the money to a trust in the will. For a child with a disability, a Henson trust can protect eligibility for provincial disability benefits such as Ontario’s ODSP.
Designations vs joint ownership
Joint ownership with a right of survivorship is another way to pass assets outside the estate, mainly for bank accounts and real estate (RRSPs, RRIFs and TFSAs can’t be held jointly). Unlike a designation, it gives the joint owner rights while you are alive and exposes the asset to their creditors and family law claims. Adding an adult child to the title of a home has its own tax and probate consequences, covered in joint tenancy vs tenants in common; joint bank accounts are covered in joint accounts after a death.
Common beneficiary designation mistakes
| Mistake | What can happen |
|---|---|
| Not updating after a separation or divorce | A former spouse remains entitled in many cases, because separation doesn’t cancel a designation |
| Naming only a primary beneficiary | If that person dies first, the account goes to the estate |
| Naming a minor directly | The money is held for the child under provincial rules rather than paid to the child; in B.C., the Public Guardian and Trustee usually releases funds like this at age 19 |
| A will and a designation that disagree | The one made later generally governs that account |
| No designation on group life insurance | The plan’s own default rule applies |
| Old employer plans forgotten | A designation made years ago still stands |
How to update a designation
- RRSPs, RRIFs, TFSAs and FHSAs: through the financial institution’s form or online service; outside Quebec a will can also make or change a designation, and the one made later generally governs.
- Life insurance: a signed change-of-beneficiary form given to the insurer; group coverage follows the group plan’s own process. An irrevocable beneficiary can’t be changed without their consent.
- Pensions: the plan administrator’s form; pension law may give a spouse priority whatever the form says.
Related pages
Sources
The figures and rules on this page come from these sources, last checked against them on September 29, 2026. How we check facts.
- Canada Revenue Agency: If you are a designated beneficiary of a TFSA
- Canada Revenue Agency: What happens when a TFSA holder dies
- Canada Revenue Agency: If you are a successor holder of a TFSA
- Canada Revenue Agency: Death of an RRSP Annuitant