Beneficiary designations: the five-minute decision that avoids probate

Who you name as beneficiary can matter as much as how much coverage you buy.

Named vs estate

A named beneficiary receives the proceeds directly — bypassing probate, paying faster, and generally beyond the reach of estate creditors. Naming your estate (or naming no one) routes the money through probate, where it can be delayed, taxed with fees, and exposed to creditors.

Contingent beneficiaries

Always name a backup. If your primary beneficiary dies before you and there's no contingent, proceeds can fall to the estate by default.

Minor children

A minor can't directly receive a large payout. Without a trustee or a properly structured designation, the money can be controlled by the court until they reach the age of majority. Name a trustee or set up a trust.

Irrevocable beneficiaries

An irrevocable beneficiary must consent to policy changes — common in divorce agreements. Powerful, and hard to undo, so use it deliberately.

Quebec note

Designations and the effect of marriage/divorce follow the civil code — get Quebec-specific advice.

Keep them current

Divorce, remarriage, a death, a new child — review designations after every major life event. An ex-spouse named a decade ago will still be paid.