Do Stepchildren Inherit Without a Will in Ontario?

Many blended families assume that a stepparent's children will be treated like the stepparent's own. When someone dies without a will, that assumption can cause real hardship, and surviving spouses and stepchildren often disagree about what is fair.

This article explains the practical routes by which a stepchild can receive something in Ontario, and what to confirm before relying on any of them. It does not replace advice on a specific family.

Intestacy rules decide, not family feeling

When there is no valid will, the law sets who inherits rather than the deceased's wishes. A stepchild's place in those rules depends on the family's situation, so it is worth confirming with a lawyer rather than assuming. Whether a stepchild has any statutory share depends on the rules that apply to the family, and a lawyer can confirm.

The surviving spouse's position can also change with the facts. The intestacy rules giving a spouse a share do not apply if the spouses were separated at the time of death, where the separation event happened on or after January 1, 2022. That can change who is left to inherit.

Assets that can reach a stepchild without a will

A stepparent can pass assets to a stepchild on death through named beneficiaries or joint ownership. Those assets sit outside the estate, so a missing will does not stop them.

• Life insurance: a person insured can name a beneficiary in the contract or by a declaration. When a beneficiary is designated, the money does not form part of the insured's estate.
• Registered plans: a participant can designate a person to receive the benefit payable on death.
• Assets that skip probate include those with a beneficiary designation, jointly owned assets that pass automatically to the other owner, and registered plans such as RRSPs, RRIFs and TFSAs with a designation.
• If a life insurance designation names the insured's heirs, next of kin or estate, the money goes through the estate and does not bypass it.

If a stepchild is named on a registered plan, the plan administrator is discharged on paying the designated person, and that person may enforce payment. Insurance designations are governed by the Insurance Act instead, not by those plan rules. Check the actual forms rather than relying on memory.

A support claim may be an option

Ontario law lets a dependant of the deceased apply for support from the estate. For that claim, life insurance owned by the deceased and amounts payable under a plan designation are deemed part of the net estate, so designated assets can still be reached by a dependant.

There is a deadline. A dependant's support application generally cannot be made more than six months after the grant of letters probate or administration. The court may allow a later application against any part of the estate that is still undistributed. Whether a particular stepchild qualifies as a dependant depends on the facts of the family, so it is worth raising with a lawyer promptly.

Tax and practical points for a stepchild

• Most gifts and inheritances are not reported or taxed for the person who receives them.
• Estate Administration Tax is $0 on estates of $50,000 or less, and above that it is $15 for every $1,000 or part of the value over $50,000.
• Where a beneficiary is under 18, the Office of the Children's Lawyer must be served when applying for the certificate of appointment.
• Where a child has no guardian of property, money owed to the child may be paid to a parent the child lives with, up to $35,000. Larger sums are normally paid into court through the Accountant of the Superior Court of Justice, unless a court-appointed guardian of property receives them.

What to do next

• Confirm whether there is any will, including an older one, before assuming intestacy.
• Gather the names of beneficiaries on insurance, RRSPs, RRIFs, TFSAs and pensions.
• Note the date of any grant of letters probate or administration, because a dependant's support application generally cannot be made more than six months after it.
• Ask a lawyer whether a stepchild has any statutory right or a support claim on the particular facts.
• Do not pay anyone a fee to release an inheritance, which is a warning sign of fraud.

Frequently asked questions