What Is the 30-Day Survivorship Clause in Ontario and Why It Matters

The 30-day survivorship clause in Ontario is a powerful provision in wills and estate plans. It ensures that only beneficiaries who outlive the testator by at least 30 days inherit any part of the estate. This simple rule can prevent complex legal and tax issues, protect your wishes, and streamline estate administration. Let’s explore why the 30-day survivorship clause in Ontario matters and how it can benefit your estate planning strategy.

What Is the 30-Day Survivorship Clause in Ontario?

Basic Definition

The 30-day survivorship clause in Ontario requires a beneficiary to survive the testator by 30 days to receive any inheritance. If the beneficiary dies within that period, they are treated as having died before the testator.

Where It Is Used

  • Common in Ontario wills
  • Used in trusts and life insurance policies
  • Applies to spouses, children, and other heirs

Key Benefits of a 30-Day Survivorship Clause

1. Clarifies Inheritance Rights

Without this clause, a beneficiary who dies shortly after the testator may still inherit, and their own estate would then control the assets. This can result in assets going to unintended recipients.

Including the 30-day clause ensures that your original intentions are respected.

2. Prevents Double Probate

If both the testator and a beneficiary die close together, the estate may have to pass through two probate processes.

  • First through the testator’s estate
  • Then again through the beneficiary’s estate

The clause avoids this by blocking short-lived inheritances that create legal inefficiencies.

3. Addresses Common Accidents

In cases where spouses or close family members are involved in the same accident, determining the order of death can be legally difficult.

ScenarioWithout ClauseWith Clause
Both die at onceAssets may pass incorrectlyEach estate remains separate
One dies days laterAssets may go to survivor’s heirsOriginal beneficiary blocked; will prevails

This clause reduces confusion and ensures the testator’s estate is distributed as intended.

4. Minimizes Tax Consequences

According to the Income Tax Act (Canada), a tax-free rollover to a spouse’s estate is allowed under certain conditions. But if the spouse dies within 30 days, the rollover is lost.

  • Triggers a deemed disposition
  • May result in unexpected capital gains taxes

Adding this clause can help avoid accidental tax liabilities.

5. Simplifies Estate Administration

Executors benefit from this clause because it:

  1. Removes uncertainty
  2. Speeds up distribution of assets
  3. Minimizes potential disputes between families

It’s an essential tool for smooth and efficient estate management.

Frequently Asked Questions

1. Is the 30-day survivorship clause required by law in Ontario?

No, it’s not legally required, but it is strongly recommended in most estate plans.

2. Can I use a different survivorship period?

Yes. You can choose a longer or shorter period, but 30 days is the common and balanced choice.

3. Does it apply to jointly owned property?

Generally, joint ownership includes the right of survivorship. However, the clause applies to inheritance through a will, not automatically passing joint assets.

4. What happens if no survivorship clause exists?

If a beneficiary dies shortly after the testator, their estate could inherit the assets, which may contradict the testator’s intentions.

5. Should I include this clause in my will?

Yes. Most estate lawyers recommend including it for clarity, tax benefits, and legal efficiency.

Conclusion

The 30-day survivorship clause in Ontario is a simple yet effective legal tool that can protect your estate and ensure your assets are passed on as you intended. Whether you’re planning for your spouse, children, or other heirs, this clause prevents unnecessary taxes, double probate, and unintended inheritances. Always consult a legal professional to properly include it in your will or trust and tailor the clause to your specific situation.