A Canadian Beneficiary Designation Form is a legal document used to name the person or persons who will receive the proceeds of a registered financial account, life insurance policy, or pension plan upon the account holder's death. Beneficiary designations apply to Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), Tax-Free Savings Accounts (TFSAs), Deferred Profit Sharing Plans (DPSPs), Registered Pension Plans (RPPs), life insurance policies, and group benefit plans.

The primary advantage of naming a beneficiary is that the account proceeds pass directly to the designated individual, bypassing the estate and the probate process. This means the beneficiary receives the funds faster, avoids probate fees (known as estate administration tax in Ontario, which can be up to 1.5% of the estate value), and the funds are generally protected from the deceased's creditors since they never form part of the estate.

For TFSAs, there is a special designation called a successor holder, available only to the account holder's spouse or common-law partner. Unlike a regular beneficiary designation, a successor holder takes over ownership of the TFSA — the account continues as a TFSA in the survivor's name, any accrued income remains tax-free, and the transfer does not reduce the survivor's own TFSA contribution room. This is often the most tax-efficient option for married couples or common-law partners. This successor holder option is available in all provinces and territories except Quebec, where TFSA beneficiary designations can only be made by will under the Civil Code.

Beneficiary designations are governed by provincial legislation: the Succession Law Reform Act in Ontario, the Wills, Estates and Succession Act (WESA) in British Columbia, the Wills and Succession Act in Alberta, and the Civil Code in Quebec. The Income Tax Act provides the federal tax framework, including the tax-free spousal rollover for RRSPs and RRIFs.

A Beneficiary Designation Form is needed whenever you open a new registered account (RRSP, TFSA, RRIF) or purchase a life insurance policy, and again whenever your personal circumstances change. Life events that should prompt a review of your beneficiary designations include marriage, separation, divorce, the birth or adoption of a child, the death of a previously named beneficiary, a change in financial circumstances, or a move to a different province (since provincial rules differ significantly).

Updating beneficiary designations after divorce is particularly critical in Canada. In some provinces, a divorce automatically revokes a designation in favour of the former spouse for insurance policies but not necessarily for registered accounts. In other provinces, the designation remains in effect until formally changed. Failing to update designations after divorce can result in the former spouse receiving the proceeds, potentially contrary to the account holder's wishes.

A Beneficiary Designation Form is also essential for estate planning tax efficiency. Naming a spouse as the beneficiary of an RRSP or RRIF enables a tax-free rollover under the Income Tax Act — the proceeds transfer to the surviving spouse's registered plan without triggering income tax on the deceased's final return. Without this designation, the full fair market value of the RRSP/RRIF is included as income on the deceased's final T1 return, often resulting in a substantial tax bill that reduces the value of the estate.

For TFSAs, designating a successor holder is the most tax-efficient choice for couples, as it preserves the tax-free status of the account. If a regular beneficiary is named instead, the TFSA is closed, and while the proceeds up to the fair market value at the date of death are received tax-free, any investment growth between the date of death and the distribution date is taxable to the beneficiary.

A comprehensive Canadian Beneficiary Designation Form must include the account holder's full legal name, date of birth, address, and contact information. The account or policy must be clearly identified by type (RRSP, RRIF, TFSA, life insurance, pension), account number, and the name of the financial institution or insurance company.

The form should include a revocation clause to clearly state whether all prior beneficiary designations for this specific account are revoked. This prevents conflicts between multiple designation forms. Note that a beneficiary designation on a form typically overrides a will, but some provinces allow a will to revoke a plan designation if it specifically identifies the plan.

For TFSA accounts, consider whether to designate a successor holder (available only for a spouse or common-law partner, and not available in Quebec). The successor holder's name, date of birth, Social Insurance Number, and relationship must be stated. For RRSPs and RRIFs, naming a spouse as beneficiary enables the tax-free rollover under the Income Tax Act.

Primary beneficiary information must include the full legal name, date of birth, relationship to the account holder, address, and the percentage share of proceeds. Multiple beneficiaries can be named, but their shares must total 100%. A contingent (alternate) beneficiary should be named in case all primary beneficiaries predecease the holder. Special instructions may address per stirpes distribution (where a deceased beneficiary's share passes to their children), trust arrangements for minor beneficiaries, or conditions on distribution.

The form should include a tax implications notice explaining the federal tax treatment of proceeds from each type of account. A provincial considerations section should note the applicable legislation and the Quebec exception for TFSA designations. The governing law clause should specify the province, and the declaration should confirm the holder's legal capacity and understanding of the designation's effect.