What happens when a segregated fund names one child as beneficiary, mom passes away without a will, and the other sibling decides he's entitled to half?
That's exactly what played out in RBC Life Insurance Company v. Masitch et al, 2026 ONSC 2277. Whose money is it when a beneficiary and an estate both claim it? | Wealth Professional
Background:
Valentina Masitch died intestate in 2023, having named her son Dimitri as sole beneficiary on two segregated fund contracts (one non-registered, one TFSA). Her other son, Oleg, argued the proceeds should be split evenly, claiming Dimitri was only named for "administrative convenience" and was holding the funds in a resulting trust for the estate.
Outcome:
Justice Dietrich didn't buy it.
Applying Mak (Estate) v. Mak over Calmusky v. Calmusky, the court confirmed the presumption of resulting trust does not apply to segregated fund beneficiary designations in Ontario. Dimitri got the full proceeds.
Why this matters for your Segregated Fund business:
- This is the second ruling in Ontario this year reinforcing that a named beneficiary on a Seg contract stands; even without a will backing it up
- The mother's own handwritten notes to her advisor were reviewed by the court but weren't enough on their own to prove intent to split
- A good reminder that thorough advisor notes can make or break these cases
Bottom line (tl;dr):
Segs remain one of the strongest tools to bypass probate and honour a client's actual wishes; even when there's no will (or a messy one) in the picture.
There are court tests to back the power of the beneficiary designation
If you want to talk through how this plays into estate planning conversations with your clients, feel free to schedule time with me: Book Meeting with Me
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