What is the difference between a successor annuitant and a beneficiary on an RRIF in Ontario?

A beneficiary is the person you name to receive the benefit payable on your death under a plan such as an RRIF. How a successor annuitant fits in depends on the plan's terms, so it is worth confirming with the plan administrator or a lawyer. The difference can affect how the money passes, and the answer depends on your plan contract and your family situation.

In Ontario, a participant in a plan such as an RRSP, RRIF or pension may name a person to receive the benefit payable on death, by a signed instrument or by will, and may revoke it the same way. A designation in a will takes effect only if it relates expressly to a plan. A later designation revokes an earlier one to the extent they are inconsistent, and the plan administrator is discharged by paying the person named in the latest designation made under the plan's terms.

Tax is a separate question, and how it applies depends on who is named and on the plan's terms. Confirm the details with an accountant or lawyer before you choose, and review your designation after any major life change.