What happens if a beneficiary named in the will dies before the testator in Ontario?

When a beneficiary dies before the testator, the gift to that person generally "lapses" — it fails and falls back into the residue of the estate. The executor cannot simply pay the gift to the deceased beneficiary's heirs unless the will or Ontario law provides otherwise.

Ontario's Succession Law Reform Act contains an anti-lapse provision that can save a gift in specific circumstances. If the deceased beneficiary was the testator's child or grandchild, and left children of their own who survive the testator, those grandchildren or great-grandchildren of the testator may inherit in their parent's place. This rule applies unless the will shows a contrary intention.

For other beneficiaries — a friend, a sibling, a charity — no anti-lapse rule applies in Ontario. The executor should check whether the will names an alternate beneficiary for that gift. If not, the gift falls into the residue and is distributed among the residuary beneficiaries. This highlights why wills should name alternates and be reviewed after significant family changes.