What Happens If You Die Without a Will?

Let’s talk about a situation no one wants to think about—but absolutely should.

Imagine this:
Aaron and Brenda are a married couple with two young kids. Aaron owns a house in his name only that he bought prior to the relationship. He also has $100,000 in investments. Together, the total value of Aaron’s estate is around $1 million, mostly due to the home. One day, Aaron tragically passes away without a will.

What happens next might surprise you.

Dying Without a Will (Intestate)

Because Aaron didn’t leave a will, his estate is distributed according to the Wills, Estates and Succession Act (WESA). This legislation outlines who gets what when someone dies intestate (without a will).

Here’s how the estate breaks down:

• Brenda inherits household furnishings.
• Brenda gets the first $300,000 of Aaron’s estate.
• That leaves $700,000 to be divided.

According to WESA:

• Brenda receives half of the remainder = $350,000
• The children receive the other half, split equally = $175,000 each

So Brenda ends up with $650,000 total. The children’s $350,000 is held and managed by the Public Guardian and Trustee until they turn 19. Brenda can apply to be the administrator of the estate, giving her some control, but still with limitations.

The House Dilemma

Now here’s the tricky part: Brenda isn’t on the title of the home. So even though she lived there and raised a family there, she doesn’t automatically inherit the house.

If the house is worth $900,000 and she wants to keep it:

• She can use her inheritance to buy out her children’s share ($350,000).
• That might involve:
  • Transferring other assets to the estate
  • Using savings
  • Refinancing the home to access funds

If she can’t afford to buy out the kids’ portion, the house may need to be sold to cover what’s owed to them. Brenda would then have to use her share of the inheritance to find a new home—or try to repurchase the house from the estate if she can get financing.

The court may consider what’s in the best interest of the children, and sometimes allows creative solutions like putting a registered interest on the property for the children’s share.

But ultimately, Brenda doesn’t just get the house, even though she was Aaron’s spouse. And that can put surviving spouses in an incredibly tough spot.

How to Avoid This Mess

The good news? This entire scenario is preventable.

Here’s what you can do:

✔️ Get a Will

• This is the first step to ensuring your wishes are followed.
• But remember, assets passing through your will are subject to probate fees—1.4% in BC.

✔️ Use Joint Ownership

• Check property titles. If you and your spouse are listed as joint tenants, the surviving partner automatically inherits the property without probate.
• Same goes for bank accounts and investment accounts—consider joint ownership where appropriate.
• Remember, this may not be an appropriate option for your specific situation!

✔️ Name Beneficiaries

• For life insurance, RRSPs, TFSAs, and other registered accounts—name direct beneficiaries to avoid probate and ensure fast distribution.

The Bottom Line

If you die without a will, your spouse may not get the home, your children get an automatic share, and the Public Guardian and Trustee may be involved in managing your estate. The courts could be too.

Make a plan today.
Because the cost of doing nothing can be huge—not just financially, but emotionally for the people you love most.