Who inherits if a beneficiary named in a will has already died in Ontario?

It depends on who the beneficiary was and what the will says. If the gift was to the testator's child, grandchild, brother or sister who died first and left a spouse or issue, the gift generally does not lapse unless the will shows a contrary intention.

In that case it passes as though made directly to the people who would share that person's estate. The rule in the facts covers only a child, grandchild, brother or sister of the testator, so for other beneficiaries, such as a friend or a cousin, how it applies depends on your situation, and it is worth confirming with a lawyer. What happens to a failed gift depends on the will's wording, including any gift of the residue or a substitute beneficiary named in the will, so the will needs to be read closely.

Two related cases are different. A gift to a former spouse, after divorce, is read as if they had died before the testator, unless the will shows a contrary intention. If the beneficiary survived the testator but died before being paid, their share generally passes to their own estate, unless the will imposes a survivorship condition.