Understanding Estate Planning in Canada

Introduction: Estate Planning in Canada

Estate planning in Canada may seem complex, but it's essential to protect your family and assets. Unlike many countries, Canada has two distinct legal systems that influence succession rules.

🇨🇦 Important for all Canadians

Succession rules vary according to your province of residence. Understanding the specifics of your region is essential for proper planning.

🏛️ Two Legal Systems in Canada

Civil law (Quebec): System based on the Civil Code of Québec.
Common law (other provinces): Based on British jurisprudence.

1. Wills in Canada

A will is your primary tool for expressing your wishes regarding the distribution of your assets after death. While the purpose is similar across Canada, requirements for validity differ.

🍁 In Quebec (Civil law)

Recognized types of wills:

Holographic will: Entirely handwritten, dated, and signed.
Will made in the presence of witnesses: Signed before two adult witnesses.
Notarial will: Drafted and preserved by a notary (most secure option).

🏔️ In other provinces (Common law)

Recognized types of wills:

Formal will: Signed before two witnesses (standard format).
Holographic will: Recognized only in some provinces.
International will: Valid under the Washington Convention.

⚠️ Attention when moving between provinces

If you move from one province to another, your will generally remains valid, but certain rules may differ. It's recommended to have it reviewed by a professional in your new province.

2. Intestate Succession: What Happens Without a Will?

When someone dies without a valid will, their estate is distributed according to provincial intestacy laws. These rules vary across Canada and can have significant consequences for families.

Province/Territory	Married Spouse + Children	Common-law Partner
Quebec	1/3 spouse, 2/3 children	Limited rights (see 2025 reform below)
Ontario	First $350,000 + 1/3 of the rest	No automatic inheritance rights
British Columbia	First $300,000 + 1/2 of remainder	Same rights as married spouses after 2+ years of cohabitation
Alberta	First $150,000 + 1/3 of remainder	Rights after 3+ years or a common child
Manitoba	First $50,000 + 1/2 of remainder	Rights after 3+ years or a common child
Saskatchewan	First $100,000 + 1/3 of remainder	Rights after 2+ years

⚠️ Common-law partners: be careful

Rights for common-law partners vary widely across Canada. Some provinces offer strong protection after a certain number of years or when there are children; others offer very limited rights.

🆕 New in Quebec (June 30, 2025)

Since June 30, 2025, Quebec has introduced significant changes to inheritance rules for couples with common children. This reform comes from Bill 56 – Parental Union Regime.

Before: Common-law partners had no automatic inheritance rights, even with children.
Now: For couples with a child born or adopted after June 29, 2025, the surviving partner automatically inherits 1/3 of the estate; the remaining 2/3 go to the children.
Option for couples with older children: They may opt into the new regime by signing a notarized contract.

This new regime does not replace the need for a will. It only provides minimal legal protection. Having a valid and up-to-date will remains essential.

3. Powers of Attorney and Mandates

Terminology and rules regarding incapacity planning differ depending on whether you live in Quebec or another province.

🍁 In Quebec

Mandate in case of incapacity (Protection Mandate)

Designates who will make decisions if you become incapacitated.
Must be homologated by a court when incapacity occurs.
Can be prepared before a notary or before witnesses.

🏔️ In other provinces

Powers of Attorney

Enduring Power of Attorney: Remains valid even if you become incapacitated.
Power of Attorney for Personal Care: Covers medical and personal decisions.
Power of Attorney for Property: Covers financial decisions.
No court homologation is generally required.

4. Beyond the Will: Building a Complete Plan

A solid estate plan goes beyond simply writing a will. It includes a broader reflection on how your accounts, beneficiaries, insurance policies, and investments are structured today.

🎯 Key Elements to Consider

Designated beneficiaries: RRSP, RRIF, TFSA, group plans, life insurance.
Joint accounts: Provides faster access to funds for the surviving spouse.
Life insurance: Protects the family’s living standard.
Trusts: Useful for protecting assets or ensuring the management of children’s inheritance.
Tax planning: Helps reduce the tax impact at death.

5. Professionals to Consult by Province

🍁 In Quebec

Notary: Expert in succession law, drafting wills and mandates.
Lawyer: Handles complex legal situations or disputes.
Financial planner: Advises on taxes, insurance and investments.

🏔️ In other provinces

Lawyer: Prepares wills and powers of attorney.
Notary public: Mainly certifies documents (limited role).
Financial planner: Helps with long-term tax and investment strategy.
Trust officer: Assists with complex trust administration.

💡 “Décoder les Finances” tip

Start with a basic will and power of attorney or mandate adapted to your province. You can refine and expand your estate plan as your family, assets, and international situation evolve. The most important step is not to remain without any plan.

6. Estimated Costs by Region

Estate planning costs vary by region, professional type, and file complexity. The following amounts are approximate and provided for educational purposes only.

Service	Quebec	Ontario	Other provinces (approx.)
Simple will	$300 – $800 (notary)	$200 – $600 (lawyer)	$150 – $500 (lawyer)
Complex will	$800 – $2000	$600 – $1500	$500 – $1200
Mandate / Power of attorney	$200 – $500	$150 – $400	$100 – $350
Complete package (will + mandate)	$800 – $1500	$600 – $1200	$500 – $1000

⚠️ Costs Disclaimer

These amounts are estimates and vary by professional and region. Always confirm exact fees directly with a notary, lawyer or financial planner.

7. Special considerations for newcomers

As a newcomer to Canada, you may have assets, heirs or tax obligations in more than one country. This makes estate planning even more important.

🌍 Assets abroad

Your Canadian will may not be recognized in every country.
Some countries require a local will for assets located there.
In some situations, several coordinated wills may be needed.

🏠 Residence and domicile

Your province of residence at the time of death determines which laws apply.
The concept of domicile can be different from simple physical residence.
This also affects taxation at death and succession rules.

👨‍👩‍👧‍👦 Family abroad

Clearly identify heirs living outside Canada in your will.
Plan for practical issues: language, documents, international transfers.
It is often helpful to appoint an executor based in Canada.

💡 “Décoder les Finances” tip

Start with a simple will and power of attorney or mandate adapted to your province. You can then refine and expand your estate plan as your family, assets and international situation evolve. The most important step is to avoid having no plan at all.