Separated Spouses Lose Automatic Inheritance Rights Under the New SLRA Amendment

New SLRA amendment: Separated for three years or more, the surviving spouse loses automatic inheritance rights.

Introduction

Starting January 1, 2025, spouses separated for three years or more will be legally recognized as divorced for estate inheritance purposes, even if they have not received a formal divorce. This change means that separated spouses will lose their automatic right to inherit from their deceased spouse’s estate, irrespective of existing agreements or court orders.

No Retroactive Effects

It's important to note that this change is not retroactive; it applies only to couples who separate after January 1, 2022. Additionally, these changes to the legislation do not affect beneficiary designations made to separated spouses for life insurance policies, RRSPs, RRIFs, or Powers of Attorney for Property or Personal Care.

Be Proactive

Separated spouses should take proactive steps to update wills and estate plans to secure assets and interests from a newly separated spouse. These actions can provide reassurance and financial security for the future, reducing anxiety about potential legal implications.

The Old Rules

Before the recent amendment to the Succession Law Reform Act (SLRA), separated spouses enjoyed the same rights as married ones if there was no separation agreement, divorce decree, or arbitration ruling. This meant that a person who had been separated for many years could still make a claim as a spouse under Ontario’s Succession Laws after the other spouse’s death, despite their separated status.

Entitlement of Preferential Share

Under the Ontario Succession Law Reform Act, a preferential share ensures that a surviving spouse receives a specific portion of the estate before other heirs inherit. Currently, this share is $350,000 for the estates of those who died on or after March 1, 2021, and $200,000 for those who died before.

A Key Consequence

A key consequence of the new amendment of SLRA is that a spouse who dies without a will while separated for three years or more will not leave a preferential share of their estate to their surviving spouse. This could have significant financial implications for the surviving spouse.

Critical Insight

In summary, a legally married spouse residing with the deceased at the time of death can claim a preferential share of the estate without a will. This provision is designed to offer support to surviving spouses during difficult times. However, spouses separated for three years or more are deemed legally divorced and not eligible to inherit any portion of the deceased's estate if no will is present. If a will is in place but does not allocate any assets to the surviving spouse, the spouse still possesses certain legal rights and options.

If you have further questions or need assistance, please get in touch with our team of lawyers:

Carman Feng: 613-981-6138

Mylene Feng: 613-808-8648