What happens if a beneficiary dies before me?

If you named a contingent beneficiary, they inherit. If not, the gift may lapse and fall into the residue or, in some cases, pass under intestacy rules. Naming backups avoids this.

Can I leave money to a charity?

Yes. Charities are common beneficiaries. Use the charity's full legal name and registration number to avoid confusion, and consider the potential tax benefits to your estate.

Do beneficiary designations override my will?

Usually yes. A valid designation on insurance or a registered account typically passes that asset directly to the named beneficiary, outside the will.

Can I leave unequal shares to my children?

Yes, you can divide your estate however you wish. Be aware that significantly unequal or unexpected gifts can sometimes prompt disputes, so clear drafting helps.

Beneficiary Basics: Who Can Inherit and How

A beneficiary is simply anyone you choose to inherit from your estate — a person, a charity, or even a trust. Understanding how beneficiaries work, including backups and special situations, helps you write clear instructions that hold up. This is general information, not legal advice — consult a lawyer in your jurisdiction.

What is a beneficiary?

A beneficiary is a person or organization entitled to receive something from your estate or from an asset like an insurance policy or registered account.

You can leave specific gifts (a sum of money or a particular item) or a share of the 'residue' — what remains after debts, taxes, and specific gifts are paid.

What are primary and contingent beneficiaries?

A primary beneficiary is your first choice to inherit. A contingent (backup) beneficiary inherits only if the primary cannot — for example, if they die before you.

Naming contingents is one of the most overlooked but important steps. Without them, a gift can lapse and fall into the residue or even into intestacy.

Can minors be beneficiaries?

Yes, but minors generally cannot receive an inheritance directly. Funds are usually held in trust or by a court-appointed trustee until they reach the age of majority.

You can set up a trust in your will to control how and when a young beneficiary receives funds — for instance, in stages at certain ages — with a trustee you choose.

How do beneficiary designations interact with a will?

Some assets — life insurance, RRSPs, RRIFs, TFSAs, pensions, and many US retirement accounts — let you name a beneficiary directly. These usually pass outside the will to the named person.

A designation generally overrides your will for that asset. Keep designations and your will consistent, and update both after major life changes.

Can you disinherit someone?

You have broad freedom to choose your beneficiaries, but it is not unlimited. Spouses and dependent children may have legal claims against an estate in many jurisdictions, regardless of what the will says.

If you intend to leave out someone who might expect to inherit, get legal advice. A poorly handled disinheritance can invite a challenge that ties up the estate.

Frequently asked questions

What happens if a beneficiary dies before me?: If you named a contingent beneficiary, they inherit. If not, the gift may lapse and fall into the residue or, in some cases, pass under intestacy rules. Naming backups avoids this.
Can I leave money to a charity?: Yes. Charities are common beneficiaries. Use the charity's full legal name and registration number to avoid confusion, and consider the potential tax benefits to your estate.
Do beneficiary designations override my will?: Usually yes. A valid designation on insurance or a registered account typically passes that asset directly to the named beneficiary, outside the will.
Can I leave unequal shares to my children?: Yes, you can divide your estate however you wish. Be aware that significantly unequal or unexpected gifts can sometimes prompt disputes, so clear drafting helps.