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.
No significant difference between the four Sunni schools is recorded on this point in the sources reviewed. 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:
- Rdsp holder capacity guardianship adult beneficiary ontario
- Tfsa over contribution penalty amount
- Rrsp home buyers plan ontario first time buyer
This entry is general information, not legal or religious advice. Inheritance turns on the exact family circumstances. Confirm Canadian law with a lawyer in your province, and any religious ruling with a qualified scholar.
Citations & sources
Every factual claim on this page traces to one of the references below. Legislation and dollar thresholds change — verify against the primary source before relying on any figure.
- What to do when someone has died — Canada Revenue Agency
- Death of an RRSP annuitant — Canada Revenue Agency
- Contribute to rrsp after converting to rrif — Treadstone Law
- Rdsp holder capacity guardianship adult beneficiary ontario — Treadstone Law
- How are rrsp and tfsa treated in equalization — Treadstone Law
- Naming minor as beneficiary ontario — Treadstone Law
- Rrsp rrif beneficiary designation tax on estate ontario — Treadstone Law
- Wills & estates practice — Treadstone Law