Key Takeaways
- 1.Alberta's Intestate Succession Act does not recognize common-law partners — a surviving common-law spouse receives $0 from a $2M estate unless they qualify as an Adult Interdependent Partner or are named as a beneficiary.
- 2.A legally married spouse on the same $2M estate would receive the entire estate if all children are also children of the marriage, or a preferential share of $150,000 plus 50% of the remainder if they are not.
- 3.RRSP and TFSA named beneficiary designations are the single most reliable channel for common-law partners — they pay out directly, outside the estate, regardless of marital status or AIP recognition.
- 4.An Adult Interdependent Partner (AIP) claim can restore spousal-equivalent inheritance rights, but uncontested claims take 3–6 months and contested claims can take 12–24 months at significant legal cost.
The Alberta Intestacy Gap: $0 for Common-Law Spouses
Alberta is one of the few Canadian provinces where common-law partners receive absolutely nothing under intestacy law. The Intestate Succession Act (RSA 2000, c I-10) defines "spouse" exclusively as a person who was legally married to the deceased at the time of death. Unlike Saskatchewan, Manitoba, or British Columbia — which extend intestacy rights to common-law partners after a qualifying period — Alberta draws a hard line between marriage and cohabitation.
This means a common-law partner who shared a home, finances, and life with the deceased for decades has no automatic inheritance right. The estate passes entirely to the statutory beneficiaries: first to children, then to parents, then to siblings, and so on down the priority chain. For how sibling inheritance works under intestacy in a neighbouring province, see our Sibling Beneficiary Intestacy Calculator for Saskatchewan.
Married vs. Common-Law: The $2M Estate Side-by-Side
To understand the full impact of the intestacy gap, let's compare what a legally married spouse and a common-law partner each receive from the same $2,000,000 Alberta estate. The deceased has two adult children from a prior relationship.
| Item | Married Spouse | Common-Law Partner (No AIP) |
|---|---|---|
| Gross estate | $2,000,000 | $2,000,000 |
| Less: probate fees | ($525) | ($525) |
| Less: legal/admin costs | ($25,000) | ($25,000) |
| Less: final tax liability | ($120,000) | ($120,000) |
| Net distributable estate | $1,854,475 | $1,854,475 |
| Preferential share to spouse | $150,000 | $0 |
| Spouse's distributive share (50% of remainder) | $852,238 | $0 |
| Total to spouse/partner | $1,002,238 | $0 |
| Total to children (split equally) | $852,237 | $1,854,475 |
The difference is stark: $1,002,238 vs. $0. A legally married spouse receives the $150,000 preferential share plus half of the remaining estate. A common-law partner receives nothing. The adult children inherit the entire $1,854,475 net estate. For how spousal shares work in Ontario, see our Spousal Beneficiary Inheritance Calculator.
The One Protected Channel: RRSP and TFSA Beneficiary Designations
Named beneficiary designations on registered accounts are the single most important planning tool for common-law couples in Alberta. These designations are contractual arrangements between the account holder and the financial institution — they operate entirely outside the estate and are unaffected by intestacy rules.
Let's assume the $2M estate includes the following registered accounts:
| Account | Value | Named Beneficiary | Paid to Common-Law Partner? |
|---|---|---|---|
| RRSP | $500,000 | Partner named | Yes — $500,000 direct |
| TFSA | $150,000 | Partner named as successor holder | Yes — $150,000 tax-free |
| Life insurance | $200,000 | Partner named | Yes — $200,000 tax-free |
| Non-registered investments | $750,000 | No designation (estate asset) | No — goes to children |
| Principal residence | $400,000 | Sole ownership (no joint tenancy) | No — goes to children |
With proper beneficiary designations on the RRSP, TFSA, and life insurance, the common-law partner receives $850,000 — entirely outside the estate. Without those designations, all $2,000,000 flows through the estate and the partner receives $0. The remaining $1,150,000 in non-registered investments and the home still passes to the adult children under intestacy.
Tax Treatment: RRSP Beneficiary Designation for Common-Law Partners
There is a critical tax distinction here. The federal Income Tax Act defines "common-law partner" more broadly than Alberta's intestacy statute — it includes anyone who has lived with the taxpayer in a conjugal relationship for at least 12 continuous months. If the surviving partner meets this federal definition (which a 15-year partner certainly does), the RRSP can roll over tax-free to the partner's own RRSP or RRIF.
Without the rollover, the full $500,000 RRSP is included as income on the deceased's final tax return — triggering approximately $230,000–$260,000 in combined federal and Alberta income tax. This tax is a debt of the estate, reducing what the children receive, not what the partner receives (since the partner's RRSP payout is contractual). For more on non-resident beneficiary tax implications, see our Non-Resident Heir Calculator.
The Adult Interdependent Partner (AIP) Claim Process
Alberta's Adult Interdependent Relationships Act (AIRA) provides a path for common-law partners to gain spousal-equivalent rights — but only if they qualify. Two people become Adult Interdependent Partners in one of two ways:
- Three-year cohabitation: Living together in a relationship of interdependence for at least three continuous years.
- Written agreement: Entering into a formal Adult Interdependent Partner Agreement at any time (no minimum cohabitation required).
- Child together: If the partners have a child together, they need only demonstrate a relationship of interdependence — the three-year cohabitation requirement is waived.
Once recognized as an AIP, the surviving partner has the same inheritance rights as a legally married spouse under the Intestate Succession Act. But here is the catch: AIP status must be claimed and proven after death if there is no written agreement in place. This creates a legal process that delays estate distribution.
AIP Claim Timeline vs. Standard Probate
| Stage | Standard Probate (Married) | AIP Claim (Common-Law) |
|---|---|---|
| Grant application filed | Month 1 | Month 1 |
| AIP claim filed | N/A | Month 1–2 |
| Grant issued | Month 2–3 | Held pending AIP resolution |
| AIP status confirmed (uncontested) | N/A | Month 4–6 |
| AIP status confirmed (contested) | N/A | Month 12–24 |
| Asset distribution begins | Month 4–6 | Month 7–9 (uncontested) |
| Estate fully settled | Month 8–12 | Month 12–18 (uncontested) |
| Estimated legal costs | $15,000–$25,000 | $18,000–$33,000 (uncontested) |
An uncontested AIP claim adds approximately 3–6 months and $3,000–$8,000 in legal costs to the estate settlement process. A contested claim — where the deceased's children challenge the partner's AIP status — can double the timeline and multiply legal costs by 5–10x. Evidence required for an AIP claim includes proof of shared residence, joint financial accounts, shared household expenses, and testimonials from friends and family about the relationship.
The $2M Scenario Re-Run: With Proper Beneficiary Designations
Now let's restructure the same $2M estate with proper planning — named beneficiary designations on all registered accounts and joint tenancy on the home — and compare the outcomes.
| Asset | Value | Without Planning | With Planning |
|---|---|---|---|
| RRSP (partner as beneficiary) | $500,000 | To estate → children | To partner (tax-free rollover) |
| TFSA (partner as successor holder) | $150,000 | To estate → children | To partner (tax-free) |
| Life insurance (partner as beneficiary) | $200,000 | To estate → children | To partner (tax-free) |
| Home (joint tenancy with partner) | $400,000 | To estate → children | To partner (right of survivorship) |
| Non-registered investments | $750,000 | To estate → children | To estate → children |
| Total to partner | — | $0 | $1,250,000 |
| Total to children | — | ~$1,854,475 | ~$604,475 |
With proper beneficiary designations and joint tenancy, the common-law partner receives $1,250,000 — even without a will and without AIP status. The RRSP rolls over tax-free (saving the estate approximately $230,000–$260,000 in tax), the TFSA transfers tax-free as a successor holder arrangement, and the home passes by right of survivorship outside probate.
The non-registered investments ($750,000) still flow through the estate to the children under intestacy, but the overall outcome is dramatically different from the unplanned scenario. The tax savings alone — from the RRSP rollover — increase the total wealth preserved for the family by over $230,000.
Estate Tax Impact: RRSP Without a Qualifying Beneficiary
The tax consequences of failing to name a beneficiary on a $500,000 RRSP are severe. Without a qualifying spouse or common-law partner (under the federal Income Tax Act definition) named as beneficiary, the full $500,000 is included as income on the deceased's final tax return.
| Scenario | RRSP Income Inclusion | Estimated Tax on RRSP |
|---|---|---|
| Partner named (tax-free rollover) | $0 | $0 |
| No beneficiary (estate is beneficiary) | $500,000 | ~$240,000 |
| Non-qualifying person named | $500,000 | ~$240,000 |
The $240,000 tax difference is a debt of the estate — meaning it reduces what the children receive under intestacy, even though the RRSP itself was paid directly to the named beneficiary. This creates a situation where proper beneficiary designation benefits everyone: the partner receives the RRSP proceeds, and the children receive a larger share of the remaining estate because the tax burden is eliminated. For charitable bequest tax strategies that can further reduce the estate tax burden, see our Charity Beneficiary Calculator.
Alberta vs. Other Provinces: Common-Law Inheritance Rights
Alberta's treatment of common-law partners is unusually restrictive compared to most Canadian provinces. Here's how a $2M intestate estate with a surviving common-law partner of 15 years would be handled across provinces:
| Province | Recognizes Common-Law? | Partner's Intestacy Share |
|---|---|---|
| Alberta (no AIP) | No | $0 |
| Alberta (with AIP) | Yes (via AIRA) | ~$1,002,238 |
| British Columbia | Yes (2+ years) | ~$980,000 |
| Saskatchewan | Yes (2+ years) | ~$1,000,000 |
| Manitoba | Yes (3+ years) | ~$1,000,000 |
| Ontario | No | $0 |
Alberta and Ontario stand out as the two major provinces that do not automatically recognize common-law partners for intestacy purposes. However, Alberta's AIP framework provides a path that Ontario lacks — if the partner can prove the relationship met the statutory requirements. For how minor children's shares are handled when they inherit in Quebec, see our Minor Child Beneficiary Calculator.
Practical Steps: Protecting a Common-Law Partner in Alberta
Given the intestacy gap, common-law couples in Alberta should take the following steps to protect the surviving partner:
- Execute a will. The most direct solution. A valid will can name the common-law partner as sole beneficiary or specify any desired split. Cost: $500–$2,000 for a straightforward will through an Alberta lawyer.
- Sign an AIP agreement. A written Adult Interdependent Partner Agreement removes the need to prove the relationship after death. It can be signed at any time during the relationship, regardless of how long the couple has cohabited. Cost: $500–$1,500 for a lawyer-drafted agreement.
- Name the partner as beneficiary on all registered accounts. Update RRSP, RRIF, TFSA, and life insurance beneficiary designations to name the partner directly. This costs nothing and can be done through the financial institution's online portal or a paper form.
- Add the partner as joint tenant on the home. Joint tenancy with right of survivorship means the home passes automatically to the surviving partner outside the estate. Note: this may trigger a land transfer tax or affect the principal residence exemption — consult a lawyer before making this change.
- Consider a TFSA successor holder designation. Unlike a beneficiary designation (which pays out the TFSA value and closes the account), a successor holder designation transfers the entire TFSA — including contribution room — to the surviving partner. This is more tax-efficient but is only available to spouses and common-law partners under the federal Income Tax Act definition.
Important Disclaimer
This article provides general information based on Alberta's Intestate Succession Act (RSA 2000, c I-10), the Adult Interdependent Relationships Act (SA 2002, c A-4.5), and the federal Income Tax Act as of 2026. Intestacy rules, AIP qualification criteria, tax rates, and court procedures are subject to legislative change. The treatment of common-law partners, beneficiary designations, and AIP claims depends on specific relationship circumstances, asset structures, and court interpretation. This is not legal, financial, or tax advice. Consult an Alberta estate lawyer and a qualified accountant before making decisions about estate planning or AIP applications.