What happens if a beneficiary named in a will dies before the testator in Ontario?
In Ontario, if a beneficiary named in a will dies before the testator (the person who made the will), the gift to that beneficiary generally "lapses" — meaning it falls back into the estate and forms part of the residue. This is the general rule, subject to important exceptions.
One notable exception is for gifts to a child or grandchild of the testator who predeceases leaving descendants of their own. Under the Succession Law Reform Act, the gift may pass to the deceased beneficiary's descendants (their children or grandchildren) rather than lapsing, unless the will expressly provides otherwise.
Another way to address this is through a carefully drafted will that includes alternate beneficiaries and survivorship clauses. For example, a will can say "I leave my residue to [Person A], and if they predecease me, to [Person B]." Without these provisions, lapsed gifts and unexpected deaths can result in distributions that the testator would not have intended.
Key takeaways
- A gift to a predeceasing beneficiary generally lapses and falls into the residue.
- Gifts to children or grandchildren may pass to their descendants rather than lapsing.
- Naming alternate beneficiaries in the will prevents unintended results.
- Review your will after any beneficiary's death to ensure it still reflects your wishes.