Five Ways Common-Law Couples in Ontario Can Protect Each Other

In Ontario, common-law partners do not automatically inherit from each other if one partner dies without a will - unlike married spouses. To protect each other, common-law couples should put a will in place, review how their home is owned, update beneficiary designations, set up powers of attorney, and understand that "common-law" does not carry the same automatic legal rights as marriage. Each of these five steps is explained below.

In Ontario, common-law partners do not automatically inherit from each other if one partner dies without a will. However, there are several important estate planning steps common-law couples can take to protect each other legally and financially.

What Estate Planning Steps Should Common-Law Couples Take in Ontario?

1. Have a Properly Drafted Will to Protect Your Common-Law Partner in Ontario

A will is one of the most important tools available to common-law couples (or any individual for that matter).

Without a will, Ontario's intestacy laws determine how your estate is distributed, and your common-law partner could be left unhoused and unprotected.

A properly drafted will allows you to:

• Clearly outline who should inherit your assets
• Appoint an estate trustee you trust
• Reduce uncertainty and potential family disputes
• Ensure your partner is provided for according to your wishes

2. Review How Your Home Is Owned in Ontario

For many couples, the home is their largest shared asset.

As we discussed in our previous blog, "Living Together in Ontario: What Co-Habitating Couples Need to Know About Real Estate" the Family Law Act grants legally married spouses automatic rights to possess the matrimonial home, but those protections do not extend to common-law partners.

How property is held on title can significantly impact what happens after death. In some situations, jointly owned property may pass directly to the surviving owner outside of the estate process.

Proper legal and estate planning can help clarify ownership intentions and potentially avoid costly and emotionally damaging disputes after death.

How property is held on title can significantly impact what happens after death. In some situations, jointly owned property may pass directly to the surviving owner outside of the estate process.

Proper legal and estate planning can help clarify ownership intentions and potentially avoid costly and emotionally damaging disputes after death.

3. Update Beneficiary Designations

Certain assets may pass outside the estate if a beneficiary is properly designated. This can include things such as life insurance policies and pensions.

Reviewing and updating these designations regularly can help ensure assets go directly to the intended person and may simplify administration after death.

4. Consider Powers of Attorney for Property and Personal Care

Estate planning is not only about what happens after death.

Powers of Attorney for Property and Personal Care allow someone you trust to make financial or healthcare decisions if you become incapable of doing so yourself. Without these documents in place, your partner may face significant legal obstacles when trying to assist you.

5. Don't Assume "Common-Law" Means Equal Rights

Common-law partners in Ontario do not have the same automatic property division rights as married spouses.

One of the biggest misconceptions in Ontario is that living together for many years creates the same legal protections as marriage.

In reality, common-law relationships are treated differently under many areas of Ontario law, particularly with respect to inheritance and property rights.

Protect Your Common-Law Partner with Proper Estate Planning

At McMurter & Associates, we help individuals and families across Whitby and Durham Region navigate wills and estate planning with confidence. If you have more questions, our team would be happy to assist you. Reach out by email - info@mcmurter.com - or give us a call to set up an appointment - in-person or virtual - with one of our estate lawyers.

We have other resources for common-law couples on our blog that may help.

• Do Common-Law Partners Inherit in Ontario? What the Law Actually Says
• Buying a House with Your Common-Law Partner in Ontario: Legal Risks
• Living Together in Ontario: What Co-Habitating Couples Need to Know About Real Estate

Contact

Brian McMurter is a real estate and estate planning lawyer at McMurter & Associates in Whitby, helping Durham Region, Ontario residents with estate planning and real estate law. 

Contact McMurter & Associates Monday to Friday, 9 a.m. to 5 p.m. at info@mcmurter.com or call 1 800 756 7138 or 905 666 9200 to schedule a consultation.

Disclaimer: This article provides general information about Ontario law and is not a substitute for legal advice. Please speak with a lawyer about your specific circumstances before making decisions about real estate law and estate planning.