What happens if my beneficiary dies before me in Ontario?

If a named beneficiary predeceases you and you have not updated your designation, what happens depends on the type of account and how the designation is worded.

For a lapsed beneficiary designation (the named person has died and there is no contingent beneficiary named), the asset typically falls back into your estate. This means it goes through your will, becomes subject to estate administration tax (probate fees), and is distributed according to your will's terms — or by the laws of intestacy if you have no will.

Some financial institutions allow "per stirpes" designations — meaning if a beneficiary predeceases you, their share passes to their children automatically. This must be specified explicitly; it is not the default.

Failing to update designations after a beneficiary's death is a common oversight with real consequences. The asset may end up in unintended hands, subject to probate, or in legal limbo if the will does not address it clearly.

A proactive approach is to: name a contingent beneficiary, review designations after any beneficiary's death, and review all designations as part of your regular estate plan check-up (every few years or after any major life change).