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The Importance of Naming the Correct Beneficiary

Home News & Commentary The Importance of Naming the Correct Beneficiary
Jon Glougie

Jon Glougie

As we say goodbye to RRSP Season, we can stop thinking about the lump sum contributions that need to be made. We should, however, take this time to revisit our beneficiary designations.

As you know, your RRSP, your TFSA and Life Insurance policy(ies) all have named beneficiaries. Some of these beneficiaries may have been named many years ago, so long ago, in fact, that we may have forgotten who we even named in the first place.

Now is as good a time as any to make sure that these designations are made correctly. When making your beneficiary designations, remember that only a spouse (named as a beneficiary on an RRSP) can have the RRSP rolled over to them outside of an estate upon the passing of the annuitant.

Also remember that if you want your TFSA to be left to your spouse, your spouse should be named as a Successor Holder and not a Beneficiary. As a Successor Holder a surviving spouse will be allowed to roll the deceased spouse’s TFSA into their own, effectively doubling the surviving spouse’s TFSA contribution room.

If you have any questions about your beneficiary designation(s), please don’t hesitate to contact us and we will be happy to help.

This information has been prepared by Luft Financial. Opinions expressed in this article are those of Luft Financial only and do not necessarily reflect those of HollisWealth®. Furthermore, this does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.

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