Do your accounts clearly state who the beneficiary will be upon death. This is important, not just for your primary banking account but for all accounts. Many people die without a will. Even with a will a designated beneficiary can enable the funds to pass hands while bypassing the longer probate and estate process associated with Wills. This is seen with Life Insurance. One man I knew of had a life insurance policy with his mistress identified, thus enabling her and their child to receive funds without disclosing details of their relationship through the will. Double check that all your accounts; Life Insurance, TFSA, RRSP’s, Margin accounts as well as every day banking and savings accounts included have clearly identified benefactors, and that they reflect your intentions.
Back in the 60’s when women rarely had their own account, my grandfather had the good foresight the day before he died to open a bank account in my Grandmother’s name. The $1,000 dollars that he transferred over enabled the family to cover day-to-day expenses until the Will and estate was settled. Have you provided for your family for both short term as well as the long term dynamics of having your affairs managed and settled upon death?
If you have a mate, the registered accounts may be able to pass to one’s spouse within the tax sheltering process. Confirm that your TFSA has an identified ‘successor holder’ in addition to a beneficiary. For your RRSP it is called a ‘successor annuitant’. These distinctions allows for the funds to be rolled into your mates accounts without liquidation. A tax advantage that you’ll want to consider. Friends recently discovered that there were some unexpected blank sections on their accounts paperwork, which they are correcting. Confirming that it is important to keep track of this aspect of your accounts.
