Probate is the court process that confirms a will and gives the executor authority to administer the estate. In Ontario and British Columbia, for example, it costs a fee based on the estate’s value. Naming a beneficiary on an RRSP, RRIF or TFSA lets the account pass directly to that person, outside the estate. This page covers what that saves, how each account works, the Quebec exception and the risks. It is part of the retirement planning hub.
What probate costs
Fees vary widely by province. Two of the largest, calculated from the fee schedules:
| Province | Fee schedule | Fee on a $500,000 estate |
|---|---|---|
| Ontario | $0 on the first $50,000; 1.5% above $50,000 | $6,750 |
| British Columbia | $0 on the first $25,000; 0.6% from $25,000 to $50,000; 1.4% above $50,000; plus a $200 court filing fee | $6,650 |
Every province’s fees are in probate fees in Canada. Fees change, so confirm the current schedule with the province or an estate lawyer.
How registered accounts avoid probate
| Account and designation | Outside the estate? |
|---|---|
| RRSP or RRIF with a named beneficiary | Yes: paid directly to the beneficiary |
| RRIF with a successor annuitant (spouse or common-law partner) | Yes: the payments continue to the survivor |
| TFSA with a successor holder (spouse or common-law partner) | Yes: the survivor takes over the account |
| TFSA with a named beneficiary | Yes: the value is paid directly to the beneficiary |
| Estate named as beneficiary, or no designation | No: it goes through the estate and probate |
Designations are made on the institution’s forms (and in Quebec, generally in the will; see below). Only a spouse or common-law partner can be a RRIF's successor annuitant: named in the RRIF contract or the will, they take over the RRIF and its payments; if not named, they can still become the successor if the legal representative consents and the carrier agrees. RRSP beneficiary vs estate covers the tax at death, which a designation doesn’t avoid: the RRSP or RRIF is still taxed on your final return unless it rolls over to a spouse or an eligible dependant.
What a designation saves
If the RRSP would otherwise be your whole probated estate:
| Province | RRSP value | Probate fee avoided |
|---|---|---|
| Ontario | $300,000 | $3,750 |
| Ontario | $500,000 | $6,750 |
| Ontario | $800,000 | $11,250 |
| British Columbia | $300,000 | $3,850 |
| British Columbia | $500,000 | $6,650 |
B.C.’s figures include the $200 court filing fee charged on estates over $25,000. If the estate has other assets that already need probate, a designation saves only the top rate on the RRSP: 1.5% in Ontario, and 1.4% in B.C. above $50,000.
Quebec: the exception
Quebec generally does not recognize beneficiary designations made with a bank, credit union or brokerage on RRSPs, RRIFs and TFSAs; the beneficiary is named in the will instead, and the account goes through the estate. Plans that are insurance contracts, such as annuities and segregated funds, can have a designated beneficiary. In Quebec, a notarial will doesn’t need to be probated at all; a holograph will or a will made before witnesses is probated by a notary or the Superior Court, for a fee. Anyone who moves into or out of Quebec should review their designations.
TFSA: successor holder or beneficiary
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.
| Successor holder | Beneficiary | |
|---|---|---|
| Who can be named | Spouse or common-law partner only | Anyone |
| At death | The survivor takes over the TFSA | The TFSA’s value at death is paid out tax-free |
| Growth after death | Stays tax-free | Taxable to the beneficiary |
| Survivor’s own TFSA room | Not used, as long as the deceased’s TFSA had no excess amount | Not used by an exempt contribution (below) |
A spouse or common-law partner named as beneficiary, or a surviving spouse or common-law partner in Quebec, can contribute all or part of the payment to their own TFSA as an exempt contribution, which doesn't use their own contribution room, if they contribute it by the end of the calendar year that follows the year of death and send Form RC240 to the CRA within 30 days of contributing; the contribution can't be exempt if the deceased's TFSA held an excess amount or payments went to more than one survivor. The TFSA when you die page has the details.
Other ways people reduce probate
| Approach | How it works | Main risk |
|---|---|---|
| Joint ownership with right of survivorship | The survivor becomes the sole owner | Adding a non-spouse can be a taxable disposition, and exposes the asset to their creditors |
| Named beneficiary on life insurance | Proceeds go directly to the beneficiary | Designations need to stay current |
| Alter ego or joint partner trust (65 and older) | Assets are moved into a trust during life | Legal and accounting costs |
Things that can go wrong
- The beneficiary dies first and no contingent beneficiary is named: the account falls into the estate.
- A minor is named directly: a minor can’t receive the money, so a guardian or trustee has to manage it.
- Too much passes outside the estate, leaving it short of money to pay debts, the final tax bill or gifts in the will. The tax on an RRSP paid to a non-spouse beneficiary is generally charged to the estate.
- The will and the designations disagree, which can lead to disputes. Reviewing them together after major life events avoids most of this.
Related reading
Sources
The figures and rules on this page come from these sources, last checked against them on September 29, 2026. How we check facts.
- BC Laws: Probate Fee Act
- Canada Revenue Agency: Spouse or common-law partner as successor annuitant
- Canada Revenue Agency: If you are a successor holder of a TFSA
- Canada Revenue Agency: What happens when a TFSA holder dies
- Canada Revenue Agency: If you are a designated beneficiary of a TFSA
- Canada Revenue Agency: Tax-free Savings Account (TFSA)
- Government of British Columbia: Wills, Estates and Succession Act and Probate Rules
- Government of Ontario: Estate Administration Tax
- Justice Laws (Canada): Income Tax Act