- A person in a plan such as an RRSP, RRIF or pension may name a beneficiary by signed instrument or by will.
- 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 in the latest designation.
You may find that an RRSP names one person while the will leaves everything to someone else. That is a common and stressful discovery for families and planners, and the question is simple: which one wins?
Under Ontario's Succession Law Reform Act, the answer turns on how and when each designation was made. This article explains the main rules. It is general information, and the plan's own terms and the facts of your case still matter.
Two ways to name a plan beneficiary
A participant in a plan, such as an RRSP, RRIF or pension, may name a person to receive the benefit payable on their death. This can be done by signed instrument or by will, and the designation can be revoked the same way.
So a will can be a valid way to name an RRSP beneficiary, but only if it is done correctly.
When a will designation counts
A designation in a will takes effect only if it relates expressly to a plan. A general gift of "everything I own" or a residue clause, without a reference to the plan, is not the kind of designation the Act describes.
- A will that clearly says who receives a named RRSP can work as a designation.
- A will that only mentions the estate generally may not do so.
- A signed instrument is also a way to make a designation, and it can be revoked the same way.
Which one controls when they conflict
A later designation revokes an earlier one to the extent they are inconsistent. That means the date and form of each document matter, not just which is called the will and which is called the beneficiary form.
The plan administrator is discharged by paying the person named in the latest designation made under the plan's terms. That is why it helps to confirm early which designation the plan issuer holds on file. How a conflicting document would be treated depends on your situation, so it is worth confirming with a lawyer.
| Scenario | General result |
|---|---|
| Signed form, then a later will that expressly names the plan | The later designation revokes the earlier one to the extent inconsistent |
| Will that expressly names the plan, then a later signed form | The later form prevails to the extent inconsistent |
| Will with a general gift that does not mention the plan | Not an effective designation in the will |
If the dates are unclear, or the plan's terms add requirements, a lawyer can review the documents before anyone pays or distributes.
Limits and complications
- Power of attorney: an attorney under a continuing power of attorney for property, or a guardian of property, may make a designation when a plan is converted, renewed, replaced or transferred. This is a limited power tied to those events.
- Wills: a continuing power of attorney for property lets the attorney do anything with property that the grantor could do if capable, except make a will. A guardian of property has the same limit.
- Support claims: when a court sets dependant support, plan designations are added back to the net estate, so a named beneficiary can be affected by a support order.
- Who can claim support: a dependant is a spouse, parent, child, brother or sister whom the deceased was supporting or was legally obliged to support.
- Timing: a support application must be made within six months after letters probate or letters of administration are granted. The court may allow a late application against the portion of the estate that has not been distributed.
The tax treatment of an RRSP passing at death depends on who receives it and on the circumstances, so confirm it with an accountant.
What to do next
- Ask the plan issuer for the beneficiary designation currently on file and its date.
- Find the will and note its date and any clause that refers to the RRSP by name.
- Compare dates and wording to see which designation is the latest and whether they conflict.
- Do not distribute RRSP funds or other estate property until you know who is entitled.
- Get legal advice if the two documents disagree, if someone may claim support, or if a power of attorney was involved.
Frequently asked questions
Does my will override my RRSP beneficiary form?
Not automatically. A will can name a plan beneficiary only if it relates expressly to the plan. A later designation revokes an earlier one to the extent they are inconsistent.
Who does the RRSP issuer pay?
The plan administrator is discharged by paying the person named in the latest designation made under the plan's terms. Ask the issuer which designation it holds.
Can my attorney change my RRSP beneficiary?
Only in a limited way. An attorney under a continuing power of attorney for property may make a designation when a plan is converted, renewed, replaced or transferred. An attorney also cannot make a will for you.
Can a family member challenge an RRSP designation?
A dependant may apply for support, and plan designations are added back to the net estate when the court sets that support. The application must generally be made within six months after letters probate or letters of administration are granted.
Sources
- Succession Law Reform Act, s. 51(1)-(2) — Ontario e-Laws
- Substitute Decisions Act, 1992, S.O. 1992, c. 30, ss. 7(2), 31(1) — Ontario e-Laws
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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