$800,000 Winnipeg Estate With No Will: How Manitoba's Intestacy Rules Split the Assets Between a Spouse, Two Adult Children and CRA in 2026

The Case Study: $800,000 Winnipeg Estate, No Will, No Beneficiary Designations

Robert Chen, 62, dies suddenly in January 2026 at his home in Winnipeg's River Heights neighbourhood. He is survived by his spouse, Linda, 59, and their two adult children — Tyler, 34, and Megan, 31. Robert never got around to writing a will. He also never named a beneficiary on his RRSP.

Robert's estate consists of three assets:

The home was Robert's principal residence. The non-registered account holds Canadian equities purchased over the past decade. The RRSP is held at a major bank with no beneficiary designation on file. For a general overview of how Canada taxes estates at death, see our inheritance tax guide for 2026.

Step 1: Manitoba's Intestacy Distribution — Who Gets What

Because Robert died without a will, The Intestate Succession Act of Manitoba determines how his estate is distributed. The formula for a deceased with a surviving spouse and two or more children is:

1. Spousal preferential share: The first $50,000 goes to Linda.
2. Remainder after preferential share: $800,000 − $50,000 = $750,000.
3. Spouse's share of remainder: One-third (because there are two or more children) = $250,000.
4. Children's share of remainder: Two-thirds split equally = $250,000 each.

Step 2: The Family Home — Principal Residence Exemption Applies, but Ownership Gets Complicated

Robert's $600,000 Winnipeg home was his principal residence. Under subsection 40(2)(b) of the Income Tax Act, the principal residence exemption eliminates the capital gain on a deemed disposition at death. The $320,000 gain ($600,000 FMV minus $280,000 ACB) is fully sheltered — no capital gains tax on the home.

But the home creates a practical problem under intestacy. Linda is entitled to $300,000 of the estate. The home alone is worth $600,000 — double her entitlement. Under The Homesteads Act of Manitoba, Linda has a life estate in the family home, meaning she can continue living there. However, Tyler and Megan now hold a remainder interest in the property. Linda cannot sell the home, refinance it, or use it as collateral without their consent.

If Linda wants to keep the home outright, she must buy out Tyler and Megan's combined $300,000 interest — which may require liquidating other assets or taking on debt at age 59. A will could have left the home to Linda directly, avoiding this entirely.

Step 3: The $150,000 RRSP — The Most Expensive Missing Form in the Estate

This is where dying without a will — and without a beneficiary designation — costs the estate the most money. Robert's $150,000 RRSP has no named beneficiary. Under subsection 146(8.8) of the Income Tax Act, the full $150,000 is included in Robert's income on his terminal T1 return. For a detailed breakdown of how RRSPs are taxed at death, see our inherited RRSP tax rules guide.

Robert's other income for the portion of 2026 before his death was approximately $8,000 (one month of employment income). Adding the $150,000 RRSP inclusion produces total terminal income of approximately $158,000. The tax calculation:

At Manitoba's combined marginal rates — which reach approximately 43.4% on income between $106,717 and $173,205 — the RRSP inclusion generates roughly $45,600 in income tax. This tax is paid by the estate before any distribution to Linda, Tyler, or Megan.

Step 4: The $50,000 Non-Registered Account — Deemed Disposition

Robert's non-registered investment account holding $50,000 in Canadian equities (ACB of $30,000) triggers a deemed disposition at fair market value under subsection 70(5) of the Income Tax Act. For a deeper explanation of deemed disposition rules, see our deemed disposition guide.

The $20,000 capital gain is modest, but the tax is entirely avoidable. Had Robert left the non-registered account to Linda through a will, the spousal rollover under subsection 73(1) would have transferred the investments at Robert's adjusted cost base of $30,000 — deferring the capital gain until Linda eventually sells. Without a will, the estate has no mechanism to elect the spousal rollover on the non-registered account, and the deemed disposition applies at full fair market value. For more on how spousal rollovers work, see our spousal rollover rules guide.

Step 5: The Court-Appointed Administrator — Delays, Costs, and Bonding

With no will, there is no named executor. Someone must apply to the Manitoba Court of King's Bench for a Grant of Administration. The surviving spouse has priority, but the application still requires:

• Legal counsel: The administrator application requires a lawyer. Legal fees for a straightforward intestate administration in Manitoba typically run $3,000 to $8,000.
• Surety bond: The court may require the administrator to post a bond equal to the estate's value. Bonding costs 1-3% of the estate value — on an $800,000 estate, that is $8,000 to $24,000 over the administration period.
• Timeline: The Grant of Administration typically takes 4 to 12 weeks from application. During this time, no one has legal authority to access Robert's bank accounts, manage his investments, or deal with his property.
• Administrator's fees: The administrator is entitled to reasonable compensation — typically 2-5% of the estate value in Manitoba, or $16,000 to $40,000 on an $800,000 estate. A named executor in a will can agree to serve without fee or at a reduced rate.

The Total Tax and Cost Bill: Intestacy vs. a Basic Will

Here is the complete comparison — what Robert's estate actually pays under intestacy versus what it would have paid with a basic will and proper beneficiary designations:

What Linda Actually Receives Under Intestacy

After taxes and administration costs are paid from the estate, Linda's 37.5% intestacy share is calculated on the net estate — not the gross $800,000. Using the midpoint estimate of $75,000 in total costs:

• Net estate after costs: approximately $725,000
• Linda's preferential share: $50,000
• Remainder: $675,000
• Linda's one-third of remainder: $225,000
• Linda's total: approximately $275,000

With a will leaving everything to Linda (and spousal RRSP rollover), Linda would have received approximately $795,000 — more than $500,000 more than intestacy provides. Even if Robert had wanted to leave money to Tyler and Megan, a will would have let him choose the timing, amounts, and structure rather than having a 19th-century statutory formula decide for him.

CRA Filing Deadlines for Robert's Estate

Robert died in January 2026. The administrator — once appointed by the court — must meet these deadlines:

1. Terminal T1 return: Due by April 30, 2027. This return reports Robert's January employment income, the $150,000 RRSP income inclusion, and the $20,000 capital gain on the non-registered account. Forms T657 (if any deductions apply) and Schedule 3 are required.
2. T3 estate return: If the estate earns income during administration — interest on Robert's bank accounts, dividends from the non-registered portfolio before distribution — a T3 is due within 90 days of the estate's tax year-end.
3. Clearance certificate (TX19): The administrator should not distribute assets until CRA issues a clearance certificate confirming all tax liabilities are settled. Processing takes 3 to 6 months. Distributing without the certificate exposes the administrator to personal liability.

Three Things Robert Could Have Done in One Afternoon

The entire $65,000 to $96,000 in avoidable costs traces back to three actions that would take less than two hours:

1. Write a basic will ($500–$1,500): Leave everything to Linda. Name Linda as executor. Include a clause directing the spousal rollover on the non-registered account. This eliminates the intestacy formula, avoids the court administration process, removes the bonding requirement, and ensures Linda keeps the family home.
2. Name Linda as RRSP beneficiary or successor annuitant (free): Complete the one-page beneficiary designation form at the bank. This removes the RRSP from the estate entirely, triggers the spousal rollover under subsection 146(8.1), and eliminates the $45,600 tax bill.
3. Review beneficiary designations annually (free): Life changes — divorce, remarriage, estrangement — can make existing designations inappropriate. An annual five-minute review ensures designations remain current.