Can I name a charity as a beneficiary on my RRSP or life insurance in Ontario?

Yes, you can name a registered charity as a direct beneficiary on an RRSP, RRIF, TFSA, or life insurance policy in Ontario. This can be a tax-efficient way to make a significant charitable gift on your death.

When a charity is named as the direct beneficiary of an RRSP or RRIF, the full value is included in the deceased's income on the terminal tax return — but a charitable donation receipt for the same amount is issued to the estate, which can be used to offset the resulting tax. This effectively means the charitable gift shelters the RRSP income from tax. The math works out well compared to leaving the RRSP to individuals who would pay tax on it.

For life insurance, designating a charity as beneficiary means the proceeds pass outside the estate (avoiding probate) and a donation receipt is issued to the estate, which can offset other income on the terminal return.

There are important details to get right: the charity must be a registered Canadian charity (with a valid CRA registration number), and the donation credit rules limit how much can be claimed in any given year. An estate lawyer and financial advisor can help structure charitable giving to maximize the tax benefit.