- Registered plans with a named beneficiary — a person, not the estate itself — generally pass directly to that person outside the estate, similar to life insurance with a named beneficiary.
- Registered plans and life insurance with a named beneficiary are typically excluded from the value used to calculate Ontario's Estate Administration Tax.
Registered plans like RRSPs are usually one of the easiest assets to keep out of probate — as long as a beneficiary is actually named on the account. Skip that step, whether by oversight or because the paperwork was never updated, and the RRSP takes a very different path than most people expect.
Here's what generally happens when an RRSP has no named beneficiary at death, and why it's worth checking your own designations sooner rather than later.
The Default: No Beneficiary Means It Falls Into Your Estate
Registered plans with a named beneficiary — a person, not the estate itself — generally pass directly to that person outside the estate, similar to life insurance with a named beneficiary. Without a named beneficiary, the RRSP generally becomes part of the general estate, to be dealt with under the will (or under Ontario's intestacy rules, if there's no valid will).
Two Consequences That Follow
It's exposed to probate. Registered plans and life insurance with a named beneficiary are typically excluded from the value used to calculate Ontario's Estate Administration Tax. An RRSP with no beneficiary loses that exclusion — it's counted as part of the estate's value, and if a Certificate of Appointment of Estate Trustee is needed for other assets, it factors into that calculation too.
It's still taxed as income. Separately from the probate question, the value of an RRSP is generally included in the deceased's income for tax purposes in the year of death, unless it qualifies for a tax-deferred rollover — most commonly to a surviving spouse, common-law partner, or in some cases a financially dependent child or grandchild. Whether a beneficiary was named doesn't change this income tax treatment on its own; what matters most for a potential rollover is who ultimately receives the funds.
With a Beneficiary vs. Without
| RRSP with a named beneficiary | RRSP with no named beneficiary | |
|---|---|---|
| Passes through probate? | Generally no | Generally yes, as part of the estate |
| Counted toward Estate Administration Tax value? | Generally excluded | Generally included |
| Who decides where it goes | The named beneficiary receives it directly | Distributed per the will, or Ontario's intestacy rules if there's no will |
| Possible tax-deferred rollover | Available if paid to a qualifying spouse, common-law partner, or dependant | Can still be available, but only if the ultimate recipient under the will or intestacy qualifies |
Why This Often Surprises Families
Beneficiary designations on registered plans are usually set up through a separate form with the financial institution — not through the will itself — which makes them easy to overlook. A will can be carefully updated after a marriage, separation, or new child, while an old RRSP beneficiary form from years earlier sits untouched in a filing cabinet at the bank. Because these are separate documents, updating one doesn't automatically update the other. It's worth reviewing registered plan and insurance beneficiary designations on their own, at the same time you review your will.
How to Fix This Going Forward
- [ ] Contact your financial institution and confirm whether a beneficiary is currently named on each registered account.
- [ ] Name both a primary and, where the institution allows it, a contingent beneficiary in case the first person predeceases you.
- [ ] Review these designations again after any major life change — marriage, separation, divorce, or a new child — separately from updating your will.
- [ ] Keep a record of your current designations with your other estate planning documents so your executor knows what to expect.
Frequently asked questions
Can I name a beneficiary on an RRSP outside of my will?
Yes, and this is the standard way it's done — through a beneficiary designation form with your financial institution, separate from your will. Some people also name a beneficiary within the will itself, but confirm with your institution which approach they support for that account.
Does naming my estate as the RRSP beneficiary avoid the tax?
No. Naming your estate as beneficiary generally has the same effect, for tax and probate purposes, as having no beneficiary named at all — the funds become part of the estate and are still generally included in income for tax purposes, without the direct-transfer benefit of naming an individual.
If I want to leave my RRSP to my spouse, do I still need to name them as beneficiary?
You don't strictly have to, since your spouse could also inherit it through your will or through intestacy and still potentially qualify for a rollover — but naming them directly as beneficiary is generally the simpler, faster route, since it avoids exposing the RRSP to probate and the estate's general administration.
Are TFSAs treated the same way as RRSPs if there's no beneficiary?
The general probate consequence is similar — without a named beneficiary, a TFSA generally also falls into the estate. The income tax treatment differs from an RRSP in some respects, so it's worth confirming the specifics for your account type rather than assuming they're identical.
This is a wills & estates question
Start a file online — flat, published fees, reviewed by a licensed Ontario lawyer before a dollar is owed.