Stephen Hsia authors an article outlining a few issues to consider when naming one of your adult children as the beneficiary on a registered plan:
It’s an increasingly common story.
A widow has several children, all of them adults. She makes a will that leaves her assets to all her children equally. The widow, however, decides to leave her registered retirement savings plan (RRSP) with just one of her children. Perhaps this one child has special financial needs or was closest to mom.
You might expect this one child to receive the RRSP funds after mom’s death but what happens after mom dies is a little more complicated.