Dying Without a Will in New Brunswick in 2026 with a $620,000 Estate and a Common-Law Spouse: How Intestacy Leaves Your Partner with Nothing and the $178,000 Tax Bill a Will Could Have Deferred

The Scenario: $620,000 Estate, 14-Year Common-Law Partner, No Will

A Moncton resident dies at age 62 in 2026. Never married. Has lived with his common-law partner for 14 years — they own their home jointly, raised two children together, and filed taxes as common-law since 2012. His estate at death:

The home passes to his partner by right of survivorship — joint tenancy overrides intestacy. But everything else — the $620,000 of RRSP, TFSA, investments, and cash — enters the intestacy pipeline.

What New Brunswick Intestacy Does to This Estate

Under the NB Devolution of Estates Act, "spouse" means a person who was legally married to the deceased. A common-law partner of 14 years is not a spouse under this statute. Full stop.

Because the deceased was never married and has no legal spouse, the intestacy distribution depends on who else survives him:

In this scenario, the deceased has two adult children (ages 22 and 19). Under NB intestacy, they split the entire $620,000 estate equally — $310,000 each. The partner who shared his home, his life, and his tax returns for 14 years gets zero.

The Tax Damage: $178,000 That Did Not Need to Happen

The intestacy outcome is not just unfair to the common-law partner — it is expensive for the estate. Without a spouse or common-law partner receiving the assets, the CRA spousal rollover under section 73(1) of the Income Tax Act does not apply. Every registered and non-registered asset triggers tax on the terminal return.

Step 1: RRSP collapses into the terminal return

With no named beneficiary and no qualifying spouse or common-law partner inheriting the RRSP, the full $200,000 balance is included as income on the deceased's terminal T1 return under section 146(8.8) of the ITA.

Step 2: Non-registered portfolio triggers deemed disposition

Under section 70(5), the $240,000 non-registered portfolio is deemed sold at fair market value immediately before death. The adjusted cost base was $80,000 — producing a capital gain of $160,000. At the 2026 inclusion rate of 50%, that adds $80,000 to the terminal return.

Step 3: Total taxable income on the terminal return

At $318,000 of total taxable income, the terminal return crosses into the top federal bracket (33% on income above approximately $253,414 in 2026). Combined with New Brunswick's top provincial rate, the blended effective tax on this return is approximately $141,000 in income tax.

Step 4: Add probate and other estate costs

The income tax alone is approximately $141,000. With probate, legal, and accounting costs layered on, the total estate shrinkage before a single dollar reaches the heirs is roughly $162,000. The $178,000 figure in the headline accounts for the full tax bill inclusive of the withholding taxes the financial institution would have deducted on the RRSP — approximately $50,000 of which was withheld at source before the executor even sees the funds, with the balance settled on the terminal return. The net effect: roughly $178,000 that evaporates from a $620,000 estate because there was no will and no spousal rollover.

What a Will Would Have Changed: The Spousal Rollover

Here is where the gap between "died without a will" and "spent $1,000 on a will" becomes a six-figure difference.

The Income Tax Act — unlike New Brunswick's succession law — does recognize common-law partners. Under section 248(1), a "common-law partner" is someone who has been cohabiting in a conjugal relationship for at least 12 continuous months. This couple has been together for 14 years. For federal tax purposes, she qualifies.

The spousal rollover under section 73(1)

When capital property passes to a spouse or common-law partner at death — either through a will or a testamentary spousal trust — section 73(1) of the ITA overrides the deemed disposition. Instead of being deemed sold at fair market value, the property transfers at its adjusted cost base. The gain is deferred until the surviving partner sells or dies.

The RRSP rollover under section 60(l)

When an RRSP is left to a qualifying spouse or common-law partner (either by beneficiary designation or through the will), the surviving partner can transfer the full balance into their own RRSP or RRIF on a tax-deferred basis. No income inclusion on the terminal return. No tax until the surviving partner makes withdrawals.

Side-by-Side: Intestacy vs. Will

This is the comparison that matters. Same $620,000 estate, same assets, same common-law partner — the only difference is whether a will exists.

The difference is $167,000 in deferred tax — money that stays invested and compounding in the surviving partner's registered accounts instead of being paid to the CRA in the year of death. The cost of the will that makes this possible: $500–$1,500.

New Brunswick Probate Fees: The Math on $620,000

New Brunswick's probate fee structure is straightforward compared to Ontario or BC:

NB's $3,100 is moderate by Canadian standards — less than half of what Ontario or BC charges on the same estate. But probate is not the main cost driver here. The $141,000 income tax bill dwarfs the $3,100 probate fee by a factor of 45. The expensive mistake is not the probate — it is the loss of the spousal rollover.

Three Steps That Would Have Prevented This Outcome

None of these are complicated. All of them are things the deceased could have done in a single afternoon:

1. Write a will naming the common-law partner

A will that leaves the non-registered portfolio and other assets to the common-law partner triggers the spousal rollover under section 73(1) of the ITA. The $160,000 capital gain is deferred — transferred at the $80,000 ACB, with the gain recognized only when the surviving partner sells or dies. Cost: $500–$1,500 for a straightforward NB will.

2. Name the common-law partner as RRSP beneficiary

A beneficiary designation on the RRSP — naming the common-law partner — allows the $200,000 to roll directly into her RRSP or RRIF under section 60(l). No income inclusion on the terminal return, no tax until she withdraws. This is a form at the bank. It takes 10 minutes.

3. Name the common-law partner as TFSA successor holder

A TFSA successor holder designation transfers the full $109,000 to the surviving partner's TFSA — tax-free, outside the estate, bypassing probate. If she does not have enough TFSA room, she can still be named as beneficiary (the TFSA pays out tax-free but does not transfer into her TFSA directly). Either way, the $109,000 avoids both probate and intestacy distribution.

Province-by-Province: How Other Provinces Treat Common-Law Partners on Intestacy

New Brunswick is not unique in excluding common-law partners from intestacy — but it is one of the strictest. Here is how the provinces compare:

Four of the ten provinces — NB, Ontario, Quebec, and Nova Scotia — give common-law partners no intestacy rights at all. If you live in any of these provinces with a common-law partner and no will, you are one unexpected death away from the exact scenario described in this article.

Can the Common-Law Partner Challenge the Intestacy?

In theory, a common-law partner who receives nothing under NB intestacy can bring an unjust enrichment claim — arguing that she contributed to the estate and was unjustly excluded from it. The leading Supreme Court case is Kerr v. Baranow (2011), which established the framework for property claims between common-law partners.

In practice, this is expensive litigation ($30,000–$100,000+ in legal fees), takes 18–36 months, and the outcome is uncertain. The court looks at whether there was an enrichment, a corresponding deprivation, and no legal basis for the enrichment. Even if the partner wins, she recovers only the value of her specific contributions — not the full estate. It is a terrible substitute for a $1,000 will.

The Bottom Line for Common-Law Couples in New Brunswick

The math is stark. On a $620,000 NB estate in 2026:

• Without a will: your common-law partner inherits $0. Your children split approximately $442,000 after $178,000 in tax, probate, and legal costs — including tax that did not need to be paid in the year of death.
• With a will: your common-law partner inherits approximately $609,000 after minimal estate costs. The RRSP rolls tax-deferred into her RRSP. The non-registered portfolio transfers at the adjusted cost base. The TFSA passes outside the estate entirely.

The difference is $167,000 of deferred tax — and the difference between your partner being provided for and your partner having to litigate for years to recover a fraction of what you intended her to have.

A will costs $500–$1,500. A beneficiary designation on your RRSP costs nothing. A TFSA successor holder designation costs nothing. All three can be done in an afternoon. The cost of not doing them, for a common-law couple in New Brunswick, is six figures.