1. Learn about designated beneficiaries

A designated beneficiary is a person or organisation you name to get an asset you own after you die. For example, you may name your sister or a charity as your designed beneficiary.

You can add a designated beneficiary to some assets such as an insurance policy or pension.

Properties that have designated beneficiaries are not usually part of your estate.

Usually, when you add a designated beneficiary to an asset, they get that property when you die. They get it even if you die without a will.

It does not matter if your family situation has changed since you named them designated beneficiary. They usually still get that property.

For example, you may have named your partner as your designated beneficiary on your pension. If you're now separated from or have divorced your partner, they usually still get this money.

If you do not want this to happen, you must change your designated beneficiary, where possible.

Court can overrule beneficiary designation

Ontario law says that you must financially support your dependants if you can. So dependants who get nothing, or too little, under the intestacy rules can go to court and make a dependant's support claim.

The court may decide that the dependant's claim is valid and they need to be supported by assets in your estate.

Sometimes the only way for a dependant to get the support they need is from an asset that had a designated beneficiary.

The court can decide that:

• the designated beneficiary will not get the asset,
• the asset become part of your estate, and
• the asset be used to support the dependant instead.