Jack names his brother Tom as beneficiary of his Group RRSP. Jack gets married later in life and doesn't think to change
his beneficiary to his new wife Jill. At the time of his death Jack had over $100,000 in his Group RRSP account. Tom, his brother, receives the full $100,000. Jill receives nothing.
Furthermore, Jack's estate is responsible for the taxes owing on his RRSP in the year of his death which amount to approximately $50,000 so the estate available to Jill is further diminished.
Surviving spouses facing this situation will be quite distraught and will be looking for someone to blame. Don't let it be you. Ask us about
our Beneficiary Cleansing Service.