Estate Planning for Newcomers and Immigrants to BC

Why newcomers need to think about estate planning early

When you move to BC, you bring your family, your assets, and your expectations about how things work. But Canadian estate law is specific to each province, and BC's rules under WESA may be very different from what you're used to:

• In many countries, children inherit automatically. In BC, if you have a spouse, they may get everything under intestacy.
• In some cultures, the eldest son inherits. BC law distributes equally among children.
• In some countries, common-law relationships have no legal status. In BC, common-law partners are spouses after 2 years.
• In many countries, there is no tax at death. In Canada, there is a deemed disposition of all assets — your RRSP, investments, and capital gains are all taxable on your final return.

If you die without a BC will, BC's intestacy rules control everything — and they may produce results that would shock your family.

Is your existing will valid in BC?

Under WESA, a will is formally valid in BC if it complied with the law of:

• The place where it was made, OR
• The place where you were domiciled or habitually resident at the time, OR
• British Columbia law

So your foreign will may be technically valid. But "valid" doesn't mean "appropriate." A will from your home country almost certainly doesn't account for:

• BC's will variation rules (spouses and children can challenge your will)
• Canadian tax rules at death
• RRSP, TFSA, and pension beneficiary designations
• BC property title rules (joint tenancy vs tenants in common)
• Power of attorney and representation agreement requirements

Property in two countries

If you own property in both BC and your home country, you may need separate wills for each jurisdiction:

• A BC will covering your Canadian assets (property, bank accounts, investments, RRSPs)
• A will in your home country covering assets there

These wills must be carefully drafted so they don't accidentally revoke each other. A BC will that says "I revoke all previous wills" could inadvertently revoke your will in another country. Your lawyer needs to know about your foreign assets and documents.

Common-law relationships and newcomers

BC's definition of spouse includes common-law partners who have lived together in a marriage-like relationship for at least 2 years. This applies regardless of:

• Whether your home country recognizes common-law relationships
• Your immigration status
• Whether you've registered the relationship anywhere

This means your common-law partner in BC has inheritance rights, will variation rights, and may be entitled to a significant share of your estate — even if this wouldn't be the case in your home country.

For more: Common-Law Partners and Wills in BC

Canadian tax at death

Many newcomers are surprised to learn that Canada has a deemed disposition at death. When you die, the government treats you as if you sold all your assets at fair market value. This means:

• RRSPs and RRIFs are fully included as income on your final tax return
• Capital gains on investments and non-principal-residence property are taxable
• Your principal residence is generally exempt from capital gains

There is no inheritance tax in Canada (unlike many other countries), but the deemed disposition at death can result in a substantial tax bill for your estate. This is very different from countries where heirs pay a tax on what they receive.

The three documents newcomers need

Just like all BC residents, newcomers need three documents:

1. A will — made under BC law, covering your Canadian assets
2. An enduring power of attorney — naming who manages your finances if you're incapacitated
3. A representation agreement — naming who makes health care decisions

These are especially important for newcomers because without them, BC's default rules apply — and those rules may not align with your family's expectations or cultural norms.

For details: Power of Attorney vs Will in BC

Finding help in your language

Many BC lawyers and notaries serve clients in languages other than English. When choosing a professional:

• Ask if they have experience with cross-border estate planning
• Ask if they speak your language, or if they work with interpreters
• Legal aid and community legal clinics may offer free or low-cost help for newcomers
• Settlement agencies like MOSAIC, ISSofBC, and SUCCESS often have referral lists