Can I split my RRSP among multiple beneficiaries in Ontario?

Yes, most financial institutions allow you to name multiple beneficiaries on an RRSP and specify the percentage each person is to receive. For example, you can direct that three children each receive one-third.

The percentages must add up to 100% of the account value. If one of the named beneficiaries predeceases you, what happens to their share depends on how your designation is worded — some designations let the surviving beneficiaries absorb it proportionately, others send it to the estate. It is worth specifying your preference on the designation form.

Note that splitting your RRSP among non-spouse beneficiaries does not reduce the income tax owed on death — the full RRSP value is still included in the deceased's terminal return income regardless of how many people receive the money. The tax is paid by the estate from estate assets, not by the beneficiaries personally (unless the estate is insolvent, in which case the estate must deal with the shortfall).

If you want one of the shares to go to a minor grandchild, plan how that share will be managed until they reach adulthood. A lawyer can advise on structuring designations for minors.