Can a minor be named as a beneficiary of life insurance or an RRSP in Ontario?

Yes, you can generally name a child as a beneficiary of life insurance, because an insured may designate a beneficiary in the contract or by a declaration. The harder question is who looks after the money until the child is old enough to manage it.

A child cannot sensibly handle a large payment, so many people name a trustee or set up a trust to hold the money for the child. How this works depends on the insurer or plan and on the exact wording of the designation. A designation of 'heirs' or 'estate' is treated as naming your personal representative, not a person you choose.

If money does pass through an estate and a probate application is needed, a beneficiary who is a minor may mean the application also needs to be sent to the Office of the Children's Lawyer and the Office of the Public Guardian and Trustee. An RRSP with a beneficiary designation is left out of the estate value for Estate Administration Tax. A lawyer can help you choose between naming the child directly and using a trust.