What assets are NOT included in an intestate estate in Ontario?

Not all of a deceased person's assets flow through their estate — and this is true whether they had a will or not. Certain assets pass outside the estate by operation of law, meaning they are unaffected by either the will or the intestacy rules.

Assets that typically pass outside the estate include: property held in joint tenancy (which goes to the surviving joint owner automatically); registered accounts like RRSPs, RRIFs, and TFSAs with a named beneficiary; and life insurance proceeds where a beneficiary is named on the policy. Pension death benefits often pass the same way, depending on the plan terms.

Understanding which assets are "in the estate" versus "outside the estate" is essential for both planning and administration. A large estate on paper may have relatively little flowing through the intestacy formula if most assets pass by designation or joint ownership. Conversely, forgetting to update a beneficiary designation after a major life change can produce unintended results that no will or court can easily fix.