When you die without a Will (die intestate), the Succession Law Reform Act (SLRA), sets out who inherits what from your estate. The scenarios will be set out below.
First, you should be aware of a few applicable definitions.
- Spouse: Two people who are married to each other (includes married spouses who are separated).
- Issue: Descendants born before a person’s death or born after the person’s death.
- Estate: A person’s assets minus liabilities at the time of their death. Excludes property held in joint tenancy with another person or an asset with a designated beneficiary.
Intestacy Scenarios
1. Spouse and no issue: Spouse inherits the entire estate
2. Spouse with issue: If the estate is worth less than $200,000 the spouse inherits the entire estate. If the estate is worth more than $200,000 the spouse gets $200,000 and the rest is split equally among the spouse and children.
3. No spouse with issue: The estate is divided equally between the children.
4. No spouse and no issue: Parents inherit the estate divided equally.
5. No spouse, no issue, no parents: Siblings inherit the estate divided equally.
6. No spouse, no issue, no parents, no siblings: Nephews and nieces inherit the estate equally.
7. No spouse, no issue, no parents, no siblings, no nephews and nieces: Next of kin inherit based on consanguinity.
While the above scenarios may seem simple it might not be ideal for your situation. For example, you might have a common law spouse you want to provide for or you are separated but not legally divorced. Or you might have a relative you want to receive something.
Furthermore, you will have no control over who will manage the estate or how it will be distributed. The executor that manages and distributes your estate might not be the person you would trust to carry out your intentions and they would not have any instructions (a Will) to follow. This can often lead to disputes among family members which may lead to litigation ($$$). Assets such as the family home may need to be sold to distribute the estate equally.
These are just some examples of what could go wrong in an intestacy. At the end of the day, you know your affairs the best and it is in your and your family’s best interest to have a Will.
One reply on “Law of Intestacy in Ontario”
[…] should think about estate planning and preparing a Will. In Ontario, if you die without a Will, the intestacy rules set by the Ontario government will apply. While these rules might be suitable for some people, if […]