08/25/2026
A will is important, but it doesn’t necessarily determine where every asset goes when you die. 👀
Depending on how an asset is owned, structured, or designated, it may pass outside your will.
Here’s how:
1. Life Insurance
With a named beneficiary, the death benefit is generally paid directly to them rather than through your estate.
2. RRSPs & RRIFs
A named beneficiary may receive the proceeds directly. Tax consequences can still apply, with special rules for spouses and certain dependants.
3. TFSAs
A named beneficiary can receive TFSA proceeds. A spouse or common law partner can instead be named successor holder, allowing them to take over the TFSA while maintaining its tax exempt status.
4. LIRAs & LIFs
Pension legislation applies to these locked in accounts. Depending on your province and circumstances, a spouse or eligible beneficiary may have rights to the funds outside your will.
5. Segregated Funds
As insurance contracts, segregated funds can generally have a named beneficiary who receives the death benefit directly.
6. Jointly Owned Assets
Assets with a right of survivorship may pass directly to the surviving owner, depending on the ownership arrangement and province.
7. Assets Held in Trust
Properly structured trust assets are generally distributed according to the trust’s terms rather than your will.
8. Pensions
Pensions generally pass to a surviving spouse or named beneficiary. If there’s no eligible recipient, some benefits may cease at death. Different rules can apply if the pension is commuted.
The takeaway? Your will is only one part of your estate plan. Your beneficiaries, account ownership, trusts, pensions, and will should all work together to reflect your intentions.
Save this for your next estate plan review. 📌
Rules vary by province and individual circumstances. For educational purposes only, not legal, tax, or financial advice.
