When it comes to estate planning, understanding how your province recognizes common-law partnerships is crucial. In Canada, common-law relationships do not receive uniform legal treatment across all provinces and territories, which directly impacts inheritance rights. For couples who have chosen not to marry, knowing whether your province or territory legally recognizes your relationship—and to what extent—is essential for effective estate planning.
In many cases, common-law partners do not inherit automatically if there’s no will. Below is a table summarizing each province’s and territory’s approach to common-law partner recognition and intestate inheritance rights.
| Province/Territory | Common-Law Recognition | Intestate Inheritance Rights for Common-Law Partners | Requirement for Common-Law Status |
|---|---|---|---|
| Alberta | Recognized | Inherits only if recognized as an Adult Interdependent Partner | 3 years cohabitation or child together |
| British Columbia | Recognized | Eligible to inherit as a spouse | 2 years cohabitation |
| Manitoba | Recognized | Common-law partners have inheritance rights | 3 years cohabitation or registered relationship |
| New Brunswick | Not Recognized | No automatic inheritance rights | N/A |
| Newfoundland and Labrador | Recognized | Inherits only if specified in a will | 2 years cohabitation |
| Nova Scotia | Recognized | Eligible under the Intestate Succession Act | 2 years cohabitation |
| Ontario | Not Recognized | No automatic inheritance rights | N/A |
| Prince Edward Island | Not Recognized | No inheritance rights | N/A |
| Quebec | Not Recognized | No inheritance rights; must be explicitly named in a will | N/A |
| Saskatchewan | Recognized | Common-law partners have inheritance rights | 2 years cohabitation or child together |
| Northwest Territories | Recognized | Eligible under certain conditions | 2 years cohabitation or registered relationship |
| Nunavut | Recognized | Inherits only if specified in a will | 1 year cohabitation |
| Yukon | Recognized | Common-law partners have inheritance rights | 1 year cohabitation |
Recommendations for Estate Planning as a Common-Law Partner
Making specific provisions for your common-law partner in your estate plan is the best way to secure their financial future. Here are some strategic recommendations:
Make a Will
The most secure way to ensure your common-law partner inherits your assets is by explicitly including them in your will. In provinces that don’t automatically recognize common-law relationships, a will ensures that your partner receives what you intend.
Use Joint Ownership
Jointly owning assets like a home or bank account allows the surviving partner to inherit directly without probate, which can be especially valuable in provinces without common-law inheritance rights. For large assets, this can offer security and simplify legal proceedings.
Designate Beneficiaries on Financial Accounts
For accounts like life insurance or retirement funds, designate your partner as the beneficiary. These assets transfer directly upon your death, bypassing probate and providing immediate financial support.
Create a Trust
Consider setting up a trust to control asset distribution to your partner. A trust can help provide income over time, control the timing of distributions, or protect assets from probate.
Consider a Cohabitation Agreement
A cohabitation agreement outlines financial responsibilities, asset division, and support provisions. This document provides legal clarity and can be helpful in provinces that don’t automatically recognize common-law relationships for inheritance purposes.
Update Your Estate Plan Regularly
Revisit your estate plan after major life events, such as purchasing a home, having children, or changes in your relationship. Laws regarding common-law partners may also change, so it’s essential to keep your plan current.
Consult an Estate Planning Lawyer
Given the variation in provincial laws, consulting an estate lawyer can help you create a plan that respects your wishes and protects your partner’s interests.
Frequently Asked Questions About Common-Law Partners and Estate Planning
What is a common-law partner, and how is it defined in Canada?
A common-law partner is someone you live with in a committed relationship similar to marriage, without legal marriage. Provinces have different requirements for recognizing common-law status, typically involving cohabitation for a set time or having a child together. Knowing your province’s requirements is crucial to ensure your estate plan reflects your relationship.
Does my common-law partner automatically inherit if I die without a will?
In most provinces, common-law partners do not automatically inherit under intestate laws, which govern when there’s no will. Provinces like British Columbia and Manitoba do recognize common-law relationships, while others, like Ontario, do not. Creating a will ensures your partner inherits as you intend.
How can joint ownership help my common-law partner inherit assets?
Joint ownership allows the surviving partner to automatically inherit assets like a home or bank account without probate. This setup can be beneficial in provinces that don’t recognize common-law partners under intestate laws, ensuring your partner retains access to essential assets.
Are beneficiary designations enough to secure my common-law partner’s financial future?
Designating your partner as a beneficiary on assets like RRSPs or life insurance provides direct access without probate. However, this may not cover all assets or financial needs. Including your partner in your will or setting up a trust offers more comprehensive protection.
Is a cohabitation agreement necessary for common-law partners?
A cohabitation agreement outlines asset ownership and financial arrangements, which can provide legal clarity. It’s valuable in provinces without inheritance rights for common-law partners, offering a clear record of your intentions for asset distribution or support in the event of death.
What role does a trust play in common-law estate planning?
A trust allows you to specify how and when your partner receives support. This can be beneficial in provinces that don’t recognize common-law inheritance rights, as it allows for controlled and private distribution of assets to your partner.
How often should I update my will if I’m in a common-law relationship?
Regularly updating your will, especially after significant life events, helps ensure it reflects your wishes. Law changes in your province might also impact common-law partner recognition, making periodic updates essential.
Does my common-law partner have rights to our shared home if I pass away without a will?
In some provinces, family law may allow common-law partners rights to the shared home. However, securing joint ownership or clearly stating your intentions in a will is the most reliable way to protect your partner’s interest in shared property.
What happens if I have children from a previous relationship?
If you have children from a prior relationship, they may inherit a share of your estate, potentially reducing your common-law partner’s inheritance. A will or trust can help distribute assets fairly between your children and partner, ensuring both are provided for.
Can a common-law partner claim a portion of my estate if left out of my will?
In certain provinces, financially dependent common-law partners may make a claim for support, even if left out of a will. However, not all provinces allow such claims. Consulting an estate lawyer can help clarify your partner’s rights and minimize legal challenges.
Additional Resources
For more information on estate planning, common-law partner recognition, and related legal resources in Canada, refer to these helpful links:
- Estate Planning for Common-Law Partners in Canada
- Canadian Bar Association: Estate Planning Resources
- Canada Revenue Agency: Common-Law Partner Benefits
- Provincial and Territorial Resources on Common-Law Relationships
Disclaimer
This article is for informational purposes only and is not intended as legal advice. Common-law partner recognition and estate planning laws vary significantly by province and territory in Canada, and individual circumstances can greatly affect legal outcomes. To ensure your estate plan is fully compliant with local laws and accurately reflects your wishes, it’s essential to consult a qualified estate planning lawyer. A legal professional can provide personalized advice and help protect your interests and those of your common-law partner.
