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In Quebec, naming your married or civil-union spouse has an effect few people know about.

The difference between revocable and irrevocable designations, exemption from seizure, the effect of divorce, and why an unrevised contract sometimes does the opposite of what you intended.

The CompareTaux teamReading: 7 min

Revocable or irrevocable

A revocable designation can be changed freely by the policyholder. An irrevocable one cannot be changed without the beneficiary’s written consent, and it also restricts certain acts such as a surrender or a policy loan.

The rule specific to married and civil-union spouses

In Quebec, designating a married or civil-union spouse as beneficiary is irrevocable by default in an individual insurance contract, unless the contract states otherwise. It is a feature of Quebec law that regularly surprises people.

A de facto spouse is not covered

This presumption does not apply to a common-law spouse, even after many years together. An express designation is required, failing which the benefit follows the contract’s order or falls into the estate.

Exemption from seizure

Where a beneficiary is designated and stands in a family relationship set out in law, the benefit may be beyond the reach of the policyholder’s creditors. A benefit paid to the estate, for lack of a designation, has no such protection.

Divorce, separation, nullity

A judgment of divorce or nullity of marriage lapses the spouse’s designation, unless a contrary intention is expressed. Separation from bed and board does not have the same effect: the distinction is technical and consequential.

Minor beneficiaries

A benefit paid to a minor is administered under tutorship rules, with the constraints that implies. A testamentary trust or the designation of a trusted adult is planned with a notary.

Revisit at every life event

Marriage, separation, birth, the death of a beneficiary, a new union: each warrants rereading the designations. A form signed fifteen years ago still dictates who receives the money.

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