Estate planning basics: wills, beneficiaries and your RRSP

Updated November 2026

Estate planning is deciding who gets what, who is in charge if you can't manage your own affairs, and how to keep tax and delays to a minimum. For most savers, the RRSP or RRIF is the biggest tax issue – and a beneficiary form or a will clause decides how it is handled.

Make a will

A will names your executor (in Quebec, the liquidator), says who inherits what, and can name a guardian for young children. Without one, provincial law decides who inherits, which may not match your wishes – a common-law partner, for example, may get nothing in some provinces.

Each province sets its own rules for a valid will (witnesses, handwritten wills, notarial wills in Quebec). A lawyer or, in Quebec, a notary can make sure yours is valid.
Review it after marriage, separation, divorce, a birth or a move to another province. In some provinces, marriage or divorce changes how an existing will applies.

Powers of attorney and the protection mandate

A will only works after death. You also need documents naming someone to act for you if you lose capacity while alive. The names differ by province:

Property and finances: often called a continuing or enduring power of attorney – it has to say it continues if you become incapable.
Health and personal care: called a power of attorney for personal care, a personal directive, a representation agreement or similar, depending on the province.
Quebec: a protection mandate names a mandatary to look after you and/or your property if you become incapable. It takes effect only after a court homologates (approves) it, once your incapacity has been assessed.

Without these documents, your family may have to go to court or a public guardian before they can pay your bills from your accounts.

Naming beneficiaries on RRSPs, RRIFs and TFSAs

In most provinces and territories you can name a beneficiary directly on the plan form at your bank or broker. The money then goes straight to that person without passing through your will, which can be faster and, in many provinces, keeps it out of probate.

TFSA: you can name your spouse or common-law partner as successor holder, or name anyone as a beneficiary. A successor designation only works where provincial or territorial law recognizes it.
Quebec: Quebec does not recognize successor holder or beneficiary designations made on a TFSA (except annuity contracts), and Quebec legal guidance explains that you leave an RRSP or RRIF to your spouse through your will. Plans held as insurance contracts with an insurer, such as annuities, can carry a beneficiary designation. Ask a notary how your plans are set up.
Review designations after any change in your family, and make sure your will and your plan forms say the same thing. A designation may not change automatically on separation or divorce.

What happens to an RRSP or RRIF at death

The general rule: the full value of your RRSP or RRIF at death is added to your income on your final tax return. On a $300,000 RRIF, that alone can push much of the amount into the top tax bracket. The estate pays the tax, even if a beneficiary named on the plan receives the money.

The main exceptions:

Spouse or common-law partner. If your spouse or partner is the beneficiary (on the plan or in your will) and the money is transferred to their own RRSP or RRIF, or used to buy an eligible annuity, by the end of the year after the year of death, the tax is deferred until they withdraw it. A spouse can also be named successor annuitant on a RRIF to take over payments directly.
Financially dependent child or grandchild. Amounts paid to a child or grandchild who depended on you financially can be taxed in their hands instead. A minor child can use the money to buy an annuity that ends by age 18; a child dependent because of a physical or mental impairment has wider options, including an RDSP.

Leaving the RRSP to an adult child or anyone else means the tax falls on your estate, which can reduce what other heirs receive. Plan for it – for example with life insurance or by drawing down the RRIF earlier.

What happens to a TFSA at death

If your spouse or partner is the successor holder, they simply take over the TFSA and it stays tax-free; it does not use their contribution room. If they inherit it as a beneficiary or through the will instead, they can still move the money into their own TFSA without using room, as long as they contribute it by December 31 of the year after the death and file Form RC240 within 30 days. Other beneficiaries receive the value at death tax-free, but income earned after death can be taxable.

Probate

Probate is the court process that confirms a will and the executor's authority. Fees and procedures vary widely by province – from small flat fees to percentages of the estate – and Quebec notarial wills do not need probate. Assets with a named beneficiary or held jointly with right of survivorship usually pass outside the estate, but joint ownership with an adult child can create tax, legal and family problems. Get advice before adding anyone to your accounts.

Keep your documents findable

Tell your executor and attorney where your will, powers of attorney and protection mandate are kept (and in Quebec, whether the will is registered with the notarial or bar registry).
Keep a list of accounts, institutions, insurance policies, pensions and digital accounts, and update it yearly.
Note who is named as beneficiary on each RRSP, RRIF, TFSA, pension and insurance policy.
Store copies of recent tax returns and Notices of Assessment.
Name contacts: lawyer or notary, accountant, advisor.

Get proper advice. Estate law is provincial and the details matter. A lawyer, or a notary in Quebec, can draft documents that work where you live.