What is the difference between successor annuitant and beneficiary

There are 2 important things to note:. Families come in all shapes and sizes and are all different in their own way. A key benefit of having a primary beneficiary on a RRIF contract is that the amount of your RRIF will not be part of your estate, and therefore will avoid the fees, filing requirements and delays associated with probate.

This simple step will allow for more of your assets to be passed down to your loved ones. You can use our probate calculator to calculate your probate taxes and see the estimated Ontario Estate Administration Tax payable on your estate.

As mentioned above, there are many scenarios that come with planning your estate and every situation is unique. Having a plan in place for the unexpected is the best kind of reassurance. Speak with one of our experts today who have years of experience in dealing with many different scenarios surrounding successor annuitant and beneficiary options. Your financial advisor can help you decide if a successor annuitant option is right for you, and most importantly, the most efficient way to protect your estate.

My spouse is my success holder and I currently have my mother as the beneficiary. Ultimately I want the money to go to my wife if I pass and if not, then my kids. Should I list my wife as both success holder and beneficiary? Should I list her as success holder and then my kids as beneficiary along with my wife? Please advise. Hi Mel! Sometimes there can be unintended consequences of listing certain people as beneficiary or successor holder.

Reviewing your will and estate plan with a lawyer can help avoid these unintended consequences. For example, if you have three children and you list your children as beneficiary but one predeceases you then the TFSA would be split by the two remaining beneficiaries.

If you have named a spousal successor can you also have your children as beneficiaries? I was under the impression it was one or the not not both. Hi Adam!

Many TFSAs allow both a successor holder and beneficiaries to be listed. However, the beneficiary designation will only take effect if the successor holder has passed away. Your email address will not be published.

Save my name, email, and website in this browser for the next time I comment. Submit Comment. The difference is HUGE! Owen Winkelmolen. Fee-for-service financial planner and founder of PlanEasy.

The best thing for spouses and common-law partners to do is list a successor holder. Free Resources. Financial planner, personal finance geek and founder of PlanEasy. New blog posts weekly! Tax planning, benefit optimization, budgeting, family planning, retirement planning and more Related Posts…. The Simple Budget.

Fred Lui on November 10, at am. Owen on November 13, at pm. JP on May 8, at pm. Alternatively, you may worry that your spouse will be a victim of fraud or coercion resulting in the misuse of their funds to their detriment.

Naming your spouse as the successor annuitant or Joint Life and designating irrevocable beneficiaries means that the irrevocable beneficiaries would have to authorize any withdrawals or changes in payments. Once named, the requirement for their consent to make changes to the RRIF contract applies immediately and restricts you, as the owner, as well as any successor owner, such as your spouse. For example, their approval is needed if you want to increase the income stream during your lifetime.

While a few choices are available for addressing the tax liability, life insurance is often a good option. Note: For RRIF contracts held in nominee name or on book , naming a successor annuitant or Joint Life may not be available and must be verified with the particular dealer.

This strategy is free and the paperwork is easy, but everything must be completed in the correct order. The successor annuitant or Joint Life must be the spouse or common-law partner, as defined by the Income Tax Act Canada , of the annuitant. Refer to the applicable information folder, contract, and Fund Facts. The commentary in this publication is for general information only and should not be considered investment or tax advice to any party.