Rules and regulators
Each province has its own succession statute. Common-law provinces allow testamentary freedom subject to dependants' relief legislation; British Columbia's Wills, Estates and Succession Act goes further and lets a court vary a will that does not make adequate provision for a spouse or child, including an independent adult child. Quebec applies the Civil Code. There is no estate or inheritance tax anywhere in Canada, but death triggers a deemed disposition of capital property, so accrued gains become taxable in the final return.
Start with the beneficiary forms: in Canada those attached to pensions, retirement accounts and life insurance override the will and sit outside the estate, and they are rarely brought up to date following a separation or remarriage.
Leaving no will means the statute decides, and its formula is rarely the couple's own choice. Step-children get nothing, unmarried partners may get nothing in some jurisdictions, and a business needing continuity is not protected.
A Canadian estate with a second home or a bank account in another country generally faces a further, local procedure there, and the two jurisdictions may not agree on the governing law; advice before the purchase costs little next to sorting it out after a death.
The essentials
| Law | Provincial succession statutes; Civil Code in Quebec |
|---|---|
| Wills variation | British Columbia allows a court to vary a will for a spouse or child |
| Dependants' relief | Available in all common-law provinces |
| Tax | No estate tax; deemed disposition at death taxes accrued capital gains |
| Probate fees | Charged by the province, from nominal to over 1.5 % of the estate |
| Registered plans | RRSP, RRIF and TFSA pass by designation outside the estate |
What to do
- Trace the will and request the grant of probate, letters of administration or their local counterpart.
- Work out what the estate is worth, assets passing by nomination or survivorship included.
- Notify creditors by advertisement if required, and clear debts ahead of distributing.
- Death triggers tax returns: file them and obtain whatever clearance is required.
- Do not distribute before the claim period ends; keep a signed distribution account afterwards.
Fees and public funding
Provincial probate fees run from nominal to over 1.5 % of the estate, but lawyers and advisers usually cost more, and in a disputed estate their bills can exceed the amount at issue. Canada levies no estate tax; the bill comes instead from the deemed disposition, which taxes accrued gains in the final return. Registered plans, insurance and joint accounts often form the largest part of the wealth, pass outside the estate and receive the least attention.
Recent developments
Several provinces have modernised will formalities, allowing electronic wills and remote witnessing introduced during the pandemic to become permanent.
Useful offices
- Probate registry or court competent for the estate
- Revenue office, on the returns and clearances that follow a death
- The bar association or law society, which can refer you to a lawyer
- For assets outside the estate: banks, insurers and pension providers
- Civil registration office, for the death certificate and proofs of relationship
Keep in mind
Probate fees and the deemed-disposition tax together can absorb a surprising share of an estate: a cottage held for decades often generates the largest single bill.
Questions parents ask
Who inherits if there is no will?
By the statutory order. Spouse or partner and children take first place; other relatives follow in the order fixed by the legislation.
Do pensions and life insurance form part of the estate?
As a rule they do not. The person named on the nomination form receives them, whatever the will says.
How long does administration take?
For an uncontested estate, often six to eighteen months; a dispute or foreign assets can stretch it considerably.
Can a will be challenged?
It can be, for lack of capacity, undue influence or a formality, and usually by a dependant claiming provision. The time limits are tight and rigidly applied.
Sources and official links
- Canada.ca — official government portal
- Justice Laws Website — federal statutes and regulations