You’ve planned for your future, but what about when you’re no longer here?

Planning your estate and designating beneficiaries is never easy – and as an educator, you have more beneficiary designation work to manage than most. There’s the beneficiary information for your pension, RRSP and if you have a TFSA, that’s one more added to the workload.

The key takeaway is this: If beneficiary information is not organized, you risk bequeathing it to the wrong person.

Recently, we resolved a case of a deceased account holder – where, according to the deceased woman’s will (dated 1991), her ex-husband was the executor and benefactor; however, for her RRSP, dated and signed 1996, she named a friend as the beneficiary. So, who gets the RRSP – the ex-husband or the friend?

The general rule is that between the will and beneficiary form, the most recently signed and dated document takes precedence. So, the friend got the RRSP; and the ex-husband, nothing.

Still, it didn’t end there. We faced another challenge: Finding the beneficiary

Often in many cases, people don’t update beneficiary contact information. A best effort is then made to locate the beneficiary, but if they are not found within a reasonable period, your assets risk not getting to them on time, or even at all.

At the end of the day, we all want to control where our assets go after we pass away. Having your documents lined up and up to date is the simplest way to ensure your assets go exactly as you intended to those individuals you leave behind. It is of equal importance to keep your financial advisor in the loop about any significant life changes that may alter beneficiary designations – they can help you plan for any potential oversight to ensure a situation like the one mentioned above, doesn’t happen when you pass on.