A policy paying a named beneficiary directly, outside the estate.
In Islamic law
Views on conventional insurance differ among scholars, and takaful is often preferred. Where a policy exists, who is named on it determines whether the proceeds follow the shares.
In Canadian law
Proceeds are generally received tax-free and bypass probate entirely. Naming the estate instead brings the proceeds into probate and exposes them to creditors.
We have not yet researched whether the four Sunni schools differ on this term, so we are not going to tell you either way. Where a specific case turns on it, ask a qualified scholar rather than relying on a general summary.
Canadian legal detail
Treadstone Law, an Ontario firm with a wills and estates practice, covers the Canadian side of this in more depth:
- Group life insurance no named beneficiary ontario
- Donating life insurance policy to charity tax credit ontario
- Are life insurance proceeds taxable in canada
This is legal information only. For advice on your own circumstances, speak to a lawyer.
Citations & sources
Every factual claim on this page traces to a source below. Details change — check the original source before relying on any figure, fee or legal position. Anything under “further reading” is related material, not a source for what is stated here.
- What to do when someone has died — Canada Revenue Agency
- Group life insurance no named beneficiary ontario — Treadstone Law
- Donating life insurance policy to charity tax credit ontario — Treadstone Law
- Are life insurance proceeds taxable in canada — Treadstone Law
- Insurance trust ontario life insurance proceeds — Treadstone Law
- Wills & estates practice — Treadstone Law