Canada (CA)
Canada is the world's second-largest country by land area and one of the most immigration-friendly nations on earth.
Estate & Inheritance in Canada
Wills, intestacy, inheritance tax, and cross-border estate planning for expats.
Canada abolished federal inheritance tax (estate tax) in 1972 — there is no federal inheritance or estate tax. However, death triggers a "deemed disposition" rule: the CRA treats the deceased as having sold all capital property at fair market value on the date of death. Capital gains tax is owed by the estate on accrued gains (e.g., investment portfolios, rental properties, vacation homes — not the primary residence). Each province levies "probate fees" or estate administration tax on the estate's value as it passes through the provincial court system. Inheritance law is entirely provincial — there is no federal Erbrecht equivalent. Quebec operates under the Civil Code of Quebec (civil law tradition); all other provinces use common law. For expats: if you own property in multiple countries, you need a will valid in each jurisdiction. The absence of a national will registry (except Quebec) means wills can go unfound.
Intestacy — What Happens Without a Will
If you die without a valid will in Canada, the province's intestate succession legislation governs. Rules vary by province. Ontario (Succession Law Reform Act): The surviving spouse or adult interdependent partner receives the first $350,000 ("preferential share"). The remainder is split: spouse alone if no children; spouse + children split equally per stirpes if children exist. Common-law partners of less than 3 years receive nothing under Ontario intestacy — only a valid will or a dependant's relief application protects them. BC (Wills, Estates and Succession Act 2014): Spouse receives the entire estate if there are no children or if children are also the children of the surviving spouse; one-half if there are children from a previous relationship. Alberta (Intestate Succession Act): Spouse receives everything if no children, or first $150,000 plus half the remainder; children share the other half. Quebec (Civil Code): Spouse and children divide the estate in thirds (1/3 spouse, 2/3 children, or variations). Unmarried partners (common-law) inherit nothing under Quebec intestacy — the will is essential. Born-in-Canada and foreign-born children are treated identically.
Types of Valid Will
Formal Witnessed Will
Last Will and TestamentThe standard Canadian will — a written document signed by the testator in the presence of two adult witnesses, both of whom also sign in the testator's presence and in each other's presence. Witnesses must not be beneficiaries (or spouses of beneficiaries) or the will is partially invalidated. Typically drafted by a lawyer. Valid in all provinces and territories.
Legally valid in all Canadian provinces and territories. Widely recognised internationally. Recommended for complex estates, blended families, business ownership, or significant assets. A lawyer-drafted will is harder to contest.
Online will platforms (Willful, Epilogue, Nicola) are legal and affordable for simple estates — two adult witnesses still required at signing. Always keep the original in a known location and inform your executor where to find it. Update your will after major life events: marriage (which revokes a pre-existing will in some provinces), divorce, birth of children, or acquisition of significant assets.
Holographic Will
Holograph WillA will entirely handwritten and signed by the testator — no witnesses required. Valid in Ontario, BC, Alberta, Manitoba, Saskatchewan, Quebec, and most other provinces. Not valid in PEI. Must be entirely in the testator's own handwriting (no typed or printed sections, no signatures of witnesses).
Legally valid in most Canadian provinces but can be harder to probate and easier to contest. Risk: if not found, the estate proceeds as intestate. Strong recommendation: store with your lawyer or a trusted person and note its location in a letter kept with important documents.
Appropriate only for simple estates as a stop-gap measure. A holographic will does not bypass probate. Courts may scrutinise handwriting and mental capacity. Not recognised in all countries — if you have international assets, a formal witnessed will is strongly preferred.
Notarial Will (Quebec only)
Testament notariéExclusive to Quebec — a will executed before a Quebec notary (notaire). The notary drafts and witnesses the will, which is signed before them. The will is automatically deposited in the Chambre des notaires du Québec register and is self-proving — no probate required. This is the gold standard for Quebec residents.
Automatically registered; automatically searched on death through the Quebec notarial register. No probate (homologation) required — the estate can proceed directly to distribution. Highly recommended for all Quebec residents.
The notarial will cannot be revoked by a subsequent marriage (unlike formal wills in some common-law provinces). Expats moving from Quebec to another province should have their will reviewed by a lawyer in their new province to confirm it remains valid and reflective of their wishes.
Forced Heirship
Canada's common law provinces (all except Quebec) do not have European-style forced heirship (Pflichtteil). You can, in principle, disinherit adult children and other relatives entirely. However, all common law provinces have "dependant's relief" or "family relief" legislation: surviving spouses, common-law partners (generally 3+ years cohabitation or a child together), and dependent children can apply to court for adequate financial provision from the estate if the will (or intestacy) fails to provide adequate support. Applications must typically be filed within 6 months of the grant of probate. Courts have broad discretion and regularly vary wills to provide for dependent survivors. Quebec civil law: The "reserve successorale" (forced portion) was abolished in Quebec in 1994 — however, a surviving spouse has the right to partition the "family patrimony" (half of certain matrimonial assets) regardless of the will, and can claim from the estate for dependency under the CCQ.
EU Succession Regulation (Brussels IV)
Canada is not a member of the European Union and is not bound by EU Succession Regulation No. 650/2012 (Brussels IV). International succession issues involving Canadian estates are governed by conflict-of-laws rules that vary by province. General principles: (1) Immovable property (real estate) is governed by the law of the place where it is located (lex situs) — Canadian real estate follows provincial law regardless of where the deceased was domiciled. (2) Movable property (investments, bank accounts, personal property) is typically governed by the law of the deceased's last domicile — for a Canadian-domiciled person, this is provincial law. (3) Expats who move to Canada from an EU country: a Brussels IV "choice of law" declaration made before emigrating (nominating the law of your EU nationality) may remain valid for your EU assets even after you become Canadian-domiciled — consult a lawyer in both jurisdictions. (4) Hague Convention on the Law Applicable to Succession to Estates of Deceased Persons: Canada has not ratified it, but some of its principles apply through provincial conflict-of-laws jurisprudence. (5) US-Canada cross-border estates: US citizens resident in Canada must still comply with US estate tax filing obligations (Form 706) and IRS Form 3520 if receiving a foreign inheritance over $100,000. The Canada-US Tax Convention addresses some double-taxation issues.
Inheritance Tax
Canada has no federal inheritance or estate tax — this was abolished in 1972. Beneficiaries do not pay tax on inheritances received. However, three tax mechanisms affect Canadian estates: (1) Deemed Disposition on Death: the CRA treats the deceased as having disposed of all capital property at fair market value on the date of death. Accrued capital gains on non-registered investment portfolios, rental properties, and vacation/secondary properties are triggered — the estate pays capital gains tax on these at the deceased's marginal rate. The principal residence is exempt from deemed disposition. (2) RRSP/RRIF Inclusion: the full value of unmatured RRSPs and RRIFs is included in the deceased's income in the year of death (unless rolled to a surviving spouse or financially dependent child). (3) Probate Fees / Estate Administration Tax: each province levies a fee to grant probate (Certificate of Appointment of Estate Trustee). Ontario: 0.5% on the first $50,000 of estate value + 1.5% on the remainder over $50,000. BC: 1.4% over $50,000. Alberta: flat fees ($35–$525 based on estate size). Quebec: notarial wills bypass probate entirely.
| Relationship | Tax-Free Allowance | Tax Rate (above allowance) |
|---|---|---|
| Surviving spouse or common-law partner | Full spousal rollover — RRSPs, RRIFs, and capital property can roll to surviving spouse at cost base (deferred capital gain) | 0% on rollover assets; estate capital gains tax deferred until surviving spouse disposes or dies |
| Financially dependent child or grandchild | RRSP/RRIF can roll to a dependent child at cost base; capital gains on other property are not deferred | Capital gains on property: 50% inclusion rate at deceased's marginal rate (up to 53.53% in Ontario) |
| Adult children and other beneficiaries | No tax on the inheritance received by the beneficiary — tax is paid by the estate before distribution | 0% inheritance tax on beneficiary; estate pays capital gains, income inclusion, and probate fees first |
| Non-resident beneficiaries | May be subject to Canadian withholding tax on certain Canadian-source income and on gains from taxable Canadian property | 25% withholding tax (reduced by tax treaty) on most Canadian-source income flowing to non-residents; taxable Canadian property gains taxed at Canadian rates |
Capital gains inclusion rate for individuals: 50% (confirmed for 2026). The proposed increase to 66.67% for gains exceeding $250,000 was CANCELLED by the government on March 21, 2025 — the 50% inclusion rate applies across all capital gains for individuals in 2026. The 66.67% rate does apply to corporations and most trusts. The Lifetime Capital Gains Exemption (LCGE) — $1,250,000 in 2026 for qualified small business shares and qualified farm/fishing property — can shelter significant gains from capital gains tax on death. RRSP/RRIF values at death are fully included in the deceased's final tax return unless there is a surviving spouse or dependent child. Tax and estate planning (Family Trust, alter ego trust, estate freeze) significantly reduces tax on death for high-net-worth Canadians — consult a Canadian chartered tax advisor (CPA Canada) and an estate lawyer.
Cross-Border & Multi-Country Estates
Expats with assets in multiple countries face significant complexity. Key Canadian cross-border issues: (1) A Canadian will (even a notarial Quebec will) is not automatically enforceable in the UK, USA, Australia, EU, or other countries — each foreign jurisdiction applies its own probate/succession rules to locally-situated assets. (2) The CRA's deemed disposition rule applies to all of the deceased's worldwide assets if they were Canadian tax residents — capital gains on foreign real estate, foreign investments, and foreign business interests are all potentially taxable in Canada. (3) Foreign inheritance tax: Canada has inheritance tax treaties with only a handful of countries; estates may face double taxation in both Canada (capital gains) and the foreign jurisdiction (inheritance/estate tax). The Canada-US Tax Convention addresses some Canada-US double-taxation scenarios. (4) US citizens residing in Canada: the US taxes its citizens worldwide regardless of residence. US estate tax (Form 706) applies to worldwide assets. The Canada-US Tax Convention provides credits to avoid complete double taxation but does not eliminate it. Consult both a Canadian estate lawyer and a US estate attorney. (5) Reporting requirements: Canadian-resident executors must report foreign assets on the deceased's final T1 return (Form T1135 if foreign property exceeded $100,000 CAD at any time during the year). Failure is a serious CRA offence.
Certificate of Inheritance
Canada has no single national inheritance certificate — the process varies by province. Ontario: "Certificate of Appointment of Estate Trustee with (or without) a Will" — issued by the Ontario Superior Court of Justice (Estates branch). Required before financial institutions, land registry (Ontario Land Registry), and most title companies will transfer assets or real estate. Application: file with the local courthouse serving the deceased's last municipality; include the original will, death certificate, and completed Application for Certificate of Appointment. Ontario Estate Administration Tax: 0.5% on first $50,000 + 1.5% on everything over $50,000 — must be estimated and paid at filing. Processing: 4–8 weeks. British Columbia: "Grant of Probate" — administered through BC Supreme Court. Alberta: "Grant of Probate" — filed at Court of Queen's Bench. Quebec: Notarial wills do not require probate (no equivalent certificate needed); holographic or formal witnessed wills require homologation before the Superior Court. Small estate affidavit procedures exist in most provinces for estates under $50,000–$150,000.
Will Registration
Canada has no single national will registry. Each province manages its own system — or none at all. Quebec: The Chambre des notaires du Québec and the Barreau du Québec each maintain a will register; all notarial wills are automatically registered; lawyers and notaries recommend registering holographic wills too; the register is automatically searched upon death notification. Ontario, BC, Alberta: No central will registry exists. Best practices: (1) Store your original will with your lawyer (safest — law firms have document retention obligations). (2) Tell your executor exactly where the will is — in writing, in a letter with your important documents. (3) Keep a wallet card or note in your passport stating that you have a will and where it is located. (4) Consider lodging a copy (not the original) with a trusted family member. (5) Wills Point Canada (willspoint.ca) is a private Canadian will registration service — not government-operated but searchable. (6) For cross-border estates, consider registering or executing wills in each relevant jurisdiction.
Living Will & Healthcare Power of Attorney
Canada uses "advance directives" and powers of attorney to manage healthcare and financial decisions during incapacity — these documents vary significantly by province name and form. Ontario: "Power of Attorney for Personal Care" — names a substitute decision-maker for healthcare; "Continuing Power of Attorney for Property" — names a substitute for financial matters. Both are governed by the Substitute Decisions Act, 1992. BC: "Representation Agreement" (healthcare decisions, Section 7 or Section 9); "Enduring Power of Attorney" (financial decisions). Alberta: "Personal Directive" (healthcare); "Enduring Power of Attorney" (financial). Quebec: "Mandate in Case of Incapacity" (mandat de protection) — a notarial mandate must be homologated by the Superior Court before it takes effect. All provinces recognise that healthcare providers are legally bound to follow valid advance directives. Register your power of attorney and personal care directive with your lawyer, inform your family physician, and keep a copy accessible. Ontario does not have a central registry for these documents — inform your healthcare providers directly. Keep a wallet card noting your substitute decision-maker and their contact information.
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