Update Beneficiaries After Divorce in New Brunswick

If your ex-spouse is still listed as the beneficiary on your RRSP, TFSA, or life insurance policy, they will receive those assets when you die. Your will doesn't override it. Your divorce decree doesn't change it. The financial institution pays whoever is on file — and they're legally protected from liability when they do.

This is the single most dangerous administrative gap after divorce in New Brunswick, and it catches people who've done everything else right.

Why Divorce Doesn't Fix This

New Brunswick modernized its Wills Act in December 2025 (Bill 13), adding automatic revocation rules that cancel bequests and executor appointments for ex-spouses in wills. That's a significant improvement.

But here's the critical exception: those automatic revocation rules do not apply to direct beneficiary designations on financial contracts.

Under the Retirement Plan Beneficiaries Act (RSNB 2012, c. 104), beneficiary designations on RRSPs, RRIFs, TFSAs, and life insurance policies are governed by contract law, not estate law. The designation you made when you opened the account or purchased the policy remains legally binding until you physically change it with the financial institution.

A plan administrator who pays benefits to the person designated on file is "legally discharged of liability" — meaning they can't be sued for following the contractual instructions, even if your will says something different.

What You Need to Update

Go through every financial product you own and check the beneficiary designation:

Registered accounts:

• Registered Retirement Savings Plans (RRSPs)
• Registered Retirement Income Funds (RRIFs)
• Tax-Free Savings Accounts (TFSAs)
• Locked-in Retirement Accounts (LIRAs)

Insurance products:

• Individual life insurance policies
• Group life insurance through your employer
• Accidental death and dismemberment (AD&D) coverage
• Critical illness insurance

Pension plans:

• Employer pension plan survivor benefits
• Provincial public service pension
• Federal public service pension (if applicable)

Other:

• Registered Education Savings Plans (RESPs) — subscriber and successor subscriber designations
• Annuities

How to Update Each One

Each institution has its own process, but the general steps are:

1. Contact the institution and request a beneficiary change form
2. Complete the form with your new designated beneficiary (adult children, a new partner, your estate, or a trust)
3. Return the original signed form — most institutions require wet signatures, not digital
4. Get written confirmation that the change has been processed and is on file

For employer group benefits, contact your HR department. Group plans often have their own beneficiary forms separate from individual products.

For RRSPs and TFSAs held at banks or investment firms, you can usually request the change through your advisor or online banking portal — but confirm in writing that the change is reflected in their records.

The Will vs. Beneficiary Designation Conflict

If your will says "leave my RRSP to my children" but the RRSP beneficiary designation still names your ex-spouse, the beneficiary designation wins. Every time.

This isn't a grey area in New Brunswick law. Direct beneficiary designations on financial contracts override wills. The only way to change who receives these assets is to update the designation directly with the institution holding the account.

Some people try to address this by including specific plan references in their new will. Under the Retirement Plan Beneficiaries Act, a will can override a beneficiary designation — but only if the will "explicitly identifies" the specific plan by name and account number. A general clause like "I revoke all prior beneficiary designations" is not sufficient.

The safest approach is to update both: change the beneficiary designation with each institution and reference the changes in your new will.

Don't Forget Employer Benefits

Employer group benefits are easily overlooked because they're set up during onboarding and rarely reviewed. Check:

• Group life insurance beneficiary
• AD&D coverage beneficiary
• Pension plan survivor benefit designation
• Any supplemental coverage you purchased through work

Contact your HR department and request current beneficiary records for all plans. Update them to reflect your post-divorce wishes.

The New Brunswick After-Divorce Checklist includes a complete beneficiary audit worksheet covering every account type — so you can systematically work through each institution instead of hoping you haven't missed one.

See more New Brunswick guides →