Can I name a trust as the beneficiary of my registered account or insurance?

You can name a trust as the beneficiary of a life insurance policy or, in some cases, a registered account — but this is more complex than naming an individual, and the tax and administrative implications differ depending on the type of trust and account.

For life insurance, naming a testamentary trust (a trust created by your will) allows the trustee to manage the insurance proceeds for designated beneficiaries — often used for minor children, individuals with disabilities, or situations requiring structured distributions over time. The trust must be clearly identified in the insurance designation or will.

For RRSPs and RRIFs, naming a trust as beneficiary means the proceeds go to the trust rather than an individual. The tax-deferred rollover that would apply to a surviving spouse beneficiary is only available if the trust qualifies as a "spousal trust" meeting specific conditions under the Income Tax Act. Naming a non-qualifying trust means the full RRSP value is immediately included in the terminal return income, with no rollover.

Designating a trust as beneficiary should only be done with the advice of both an estate lawyer (to draft the trust properly) and a tax advisor (to ensure the designation achieves the intended outcome).