What Happens When You Die Intestate in Ontario?

If you die without a valid Will, the handling of your estate becomes complex.

We often encounter clients who assume that their assets will automatically go to their loved ones when they pass away. 

In Ontario, the Succession Law Reform Act dictates how your assets are distributed, and the outcome might not align with your wishes.

Here’s a breakdown of what happens when someone dies intestate in Ontario.

Who inherits under Ontario’s Intestacy Laws?

1. If you have a spouse (but no children):
   If you’re married and have no children, your entire estate will go to your spouse. Keep in mind, this applies to legally married spouses only—common-law partners do not automatically inherit anything under intestacy laws, which can leave them financially vulnerable.

2. If you have a spouse and children:
   When you have both a spouse and children, the estate is divided. The spouse receives the first $350,000 of the estate (called the “preferential share”). The remaining assets are split, with one-third going to the spouse and two-thirds divided equally among the children. If you have only one child, the spouse gets half of what remains, and the child gets the other half.
   

Note: If your children are minors, their inheritance will be held in trust until they turn 18. This may not be ideal for you, as 18 is a young age to inherit significant wealth, and you may have preferred a more structured distribution plan.

3. If you have children (but no spouse):
   If you pass away leaving children but no spouse, your estate is divided equally among your children. If one of your children has predeceased you but has left children (your grandchildren), their share will go to those descendants.

4. If you have no spouse or children:
   In this case, your estate goes to your parents if they are still living. If they have predeceased you, the estate is passed down to your siblings, and if they have passed away, it would go to their children (your nieces and nephews).

5. No immediate family:
   If you have no immediate family, the estate would go to more distant relatives like cousins. In the rare case that no relatives can be found, the estate becomes the property of the Ontario government.
   

The Problems with Dying Intestate

Dying intestate can lead to significant problems for your family. The court’s distribution plan may not reflect your personal wishes. For example, common-law spouses are completely excluded, potentially leaving long-term partners in a financially precarious position. Additionally, the automatic distribution rules don’t take into account personal relationships, like close friends or charities, that you may have wanted to benefit from your estate.

Moreover, dying intestate can create family tension, especially when there are disagreements over how the assets should be handled. The process can also take longer and incur higher legal fees, causing delays in distributing the estate.

The Importance of Having a Will

Creating a Will allows you to control who inherits your assets, appoint guardians for your children, and specify your wishes for how your estate is managed. It also prevents the complications, delays, and potential disputes that can arise under intestacy laws.

Protect your loved ones from unnecessary hardship and hire a professional to draft your Will!