Some assets are structured to pass directly to a named person outside your will. These are called assets with designated beneficiaries, and they do not form part of your estate - so they should not be included in your will.
At Willful, we’ve built in safeguards to help you avoid adding these types of assets to your will. This ensures your estate plan works the way it’s intended and helps prevent legal or financial complications during estate settlement.
How your will works with designated assets
When you create a will, you're outlining how to distribute the assets that form part of your estate—everything you own individually, without a beneficiary designation.
However, certain assets are meant to bypass your will entirely, including:
Jointly owned property
Registered accounts with a named beneficiary
Life insurance policies
Even though these assets aren’t included in your will, we recommend listing them in your asset list. This gives your executor a full picture of your financial situation, even if they don’t manage the distribution of those specific assets.
Assets you should NOT include in your will (Outside of Quebec)
Some assets are specifically designed to avoid probate and pass directly to the named beneficiary. Including them in your will can:
Create legal or tax complications
Delay the distribution of funds
Conflict with the beneficiary designations already on file
Instead of adding them to your will, the best approach is to:
Name the beneficiary directly through the financial institution or insurance company
Include the asset in your asset list for clarity
Assets to exclude from your will:
Jointly owned personal property (e.g., shared real estate, bank accounts, or vehicles)
Registered accounts, including:
TFSAs (Tax-Free Savings Accounts)
RRSPs, RRIFs, RSPs
RESPs (Registered Education Savings Plans)
RDSPs (Registered Disability Savings Plans)
LIRAs, LIFs, SRSPs, PRPPs
Pensions and employer-sponsored benefit plans
Life insurance policies
These assets already have their own mechanisms to transfer ownership after death—no need to duplicate them in your will.
⚠️ If you haven't named a beneficiary, the account may default to your estate, so it’s important to review your designations regularly.
What happens to these assets after you pass away?
Here’s what typically happens:
Jointly owned assets – Transfer directly to the surviving owner under the right of survivorship
Registered accounts – Transferred to the named beneficiary or successor holder (RESPs are an exception—they usually become part of the estate)
Pensions – Benefits are paid to the named beneficiary or surviving spouse
Life insurance – Payouts go directly to the named beneficiary. If none is named, the proceeds become part of the estate
Keeping these assets out of your will ensures they are distributed efficiently and according to plan.
Assets to include in your will in Quebec
In Quebec, most of the assets listed above can be gifted through your will. To ensure these assets go to the intended person:
Add them as specific legacies in your will using the Legacies section
If you don’t, they will be included in your residual estate by default
Exception for life insurance: Beneficiaries should still be named directly on the policy. If no one is named, the payout defaults to the estate.
Error messages you may see in willful
To help you avoid mistakes, Willful includes built-in text validation for these types of assets.
Outside Quebec
For TFSAs, RRSPs, pensions, etc.:
“This type of account cannot be added as a gift because it does not pass through your estate. Instead, it is recommended that you name a beneficiary with the financial institution.”
For insurance policies:
“This type of asset cannot be added as a gift because it does not pass through your estate. Instead, it is recommended that you name a beneficiary with the insurance company.”
In Quebec (for insurance only)
For life insurance:
“Beneficiary designations on a life insurance policy may be made directly on the policy, and the proceeds pass outside the will. If you don’t make a beneficiary designation directly on a life insurance policy, the estate becomes the beneficiary by default.”