Quote:
Originally Posted by Toast_Man
So when doing up a will, what's the best way to deal with investments? A lot of institutions will ask for a beneficiary. If you want those investments to go to the beneficiaries of the will, do you just leave that part blank? How screwed would a will be if a beneficiary was named on say an RRSP account?
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Well, it can get a little complicated, but sometimes (depending on the type of investment) there are reasons to make a beneficiary designation on the account. For some (RRSPs) you gain creditor protection if you name an immediate family member. For others (TFSA) you can name a successor owner (spouse) which is more efficient than having it go through the estate. And finally, some investments can circumvent the estate entirely, which avoids probate and is faster as well.
If you make a designation in the will and the investment account, the named beneficiary on the investment account usually overrides the one in the will.