Any financial policies that name designated beneficiaries (for example, life insurance policies, RRSPs, RRIFs, TFSAs, annuities etc.) do not need to go through probate. Generally speaking, these assets are ‘outside of the estate’ and can be dealt with directly between the financial institution and the named beneficiaries. There is no need to wait for probate to liquidate policies that have named beneficiaries. While it is helpful for your lawyer to know about these policies, this falls outside of the estate administration. However, your accountant will need to be advised of these policies.
The exceptions of when your lawyer may get more involved is either when such policy does not name a beneficiary and therefore will be paid to the “Estate of” the Deceased person, or the named beneficiary is the Estate itself. In this case, the asset would be subject to probate and would only be paid out after you obtain an estate grant and not beforehand.
