Beneficiaries of the Estate

The Executor or Administrator can distribute the estate:

• once the six month waiting period is over
• debts have been paid
• Canada Revenue Agency has issued a Clearance Certificate

If there are specific gifts these are distributed first. The rest of the estate is then divided according to the Will.

When someone dies without a Will, they are said to have died intestate and their property is distributed according to the rules set out in The Intestate Succession Act, 2019.

This law does not take into account the wishes of the deceased or their family. An Administrator must distribute the net value of the estate in accordance with the Act. The net value of the estate is the value of the estate after payment of taxes, debts, funeral expenses and so on.

Once all debts and liabilities are dealt with, the estate is then distributed according to the following rules.

The entire estate goes to the spouse if...

• there is a spouse and no descendants
  
• there is a spouse and children, and all children are children of the intestate and the spouse

The entire estate also goes to the spouse if the value of the estate is not more than $200,000 and there is a spouse and children who were not children of the intestate and the spouse.

If the value of the estate is more than $200,000 and there is a spouse and children who were not children of the intestate and the spouse, the spouse inherits the first $200,000 or 50% of the estate, whichever is greater. The rest of the estate will be shared as follows...

• if there is one child, the remainder is split evenly between the spouse and the child
• if there is more than one child, one-third of the remainder goes to the spouse and the other two-thirds is shared by the children

A spouse includes a legally married spouse and an individual who has lived with the intestate for at least 24 months as a spouse. It is important to note that a spouse is not entitled to any of the estate if...

• they had been living apart for more than two years at the time of the intestate's death
• a family law proceeding had been started against each other and not reconciled
• that had made a separation agreement and not reconciled
• they were in a spousal relationship with another person

If an intestate dies without a spouse or any children or grandchildren, the estate will go first to...

• the intestate's parents or descendants of their parents (such as their siblings or nieces or nephews)
• the intestate's grandparents or their descendants (such as aunts and uncles or first cousins)
• the intestate's great grandparent or their descendants.