Does dying without a will affect who gets my RRSP or TFSA in Ontario?
Generally, no — registered accounts like RRSPs and TFSAs pass outside your estate if you have named a beneficiary directly on the account. The beneficiary designation on file with your financial institution governs who receives those funds, not your will or the intestacy rules. The money goes directly to the named beneficiary and does not go through your estate.
If, however, you have not named a beneficiary (or your named beneficiary predeceased you and you never updated the designation), the account's proceeds fall into your estate and are distributed according to your will or, if you have none, Ontario's intestacy rules.
Keeping your beneficiary designations up to date is critical. A major life event — marriage, divorce, the birth of a child, or the death of a beneficiary — is a good trigger to review all of your designations. Speaking with a financial advisor or estate lawyer can help ensure your registered accounts align with your overall estate plan.
Key takeaways
- RRSPs and TFSAs with a named beneficiary pass directly, bypassing the estate.
- No will or intestacy rules can override a valid beneficiary designation.
- If no beneficiary is named, proceeds fall into the estate and intestacy rules apply.
- Review beneficiary designations regularly, especially after major life changes.