![family eating at a dinner table](/sites/freemangroup.us1.advisor.ws/files/styles/max_325x325/public/images/designating-a-direct-beneficiary.jpg?itok=sbzOTz21)
Designating a direct beneficiary? Ask yourself these questions first.
Many Canadians designate a direct beneficiary on their RRSP, RRIF, TFSA or insurance policies without giving it a second thought (although in Quebec, beneficiary designations are only effective on insurance policies). However, designating a direct beneficiary is not recommended for many plan/policy owners, where they have non-traditional or unique family situations, as it can lead to unfavourable tax implications for beneficiaries.