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When you buy life insurance in Canada, open certain investment accounts or prepare a will, you can name a beneficiary. We explain what this means and who can be a beneficiary.
A beneficiary is a person or entity who receives benefits from property owned by others.
The people or organizations you name in your will are the beneficiaries of your estate, including the money, assets and property you own. In Canada, you can also name beneficiaries on specific assets such as life insurance policies and certain types of accounts including tax-free savings accounts (TFSAs), registered education savings plan (RESPs), registered retirement savings plans (RRSPs) and other registered investment accounts. Who can be a beneficiary depends on the type of account and the province or territory where you live.
Example: “Harold had named his wife, Estelle, the beneficiary of his RRSP. This enabled her to transfer the money into her own RRSP on a tax-deferred basis after he passed away.”
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