It’s probably safe to say that not many of us have a written financial plan and maybe even fewer among us have a will. But, these are these are two very important pieces that help us to achieve our retirement and financial goals.
So what would happen if you didn’t designate someone(s) to be the beneficiary of your estate and RRSP if you were to pass away?
According to our plan sponsor, Canada Life, if a member does not have a beneficiary (or subsequently if the beneficiaries listed have since passed away prior to the member’s death) the funds would go to the estate. Also, if the beneficiary passes away after the member, then the funds would be paid out to the beneficiary’s estate.
If you pass away intestate (without a will), the government will follow the laws in your province to decide on your behalf who will be your executor and how your assets will be distributed. This is why having a final will and designated beneficiaries are important: these steps ensure that your money and other assets are distributed per your last wishes.