After divorce in New Brunswick, your will and estate plan require immediate attention because Bill 13 amendments to the Wills Act now automatically revoke gifts to former spouses upon divorce or after two years of separation. Under New Brunswick Wills Act Section 15.02, any devise, bequest, or appointment of your former spouse as personal representative is revoked unless a contrary intention appears in your will or separation agreement. Failing to update beneficiary designations on RRSPs, life insurance, and registered accounts can result in unintended distributions worth tens of thousands of dollars to an ex-spouse, as these designations override your will entirely.
Key Facts: Estate Planning After Divorce in New Brunswick
| Element | Details |
|---|---|
| Will Revocation Upon Divorce | Gifts to ex-spouse automatically revoked under Bill 13 (2025) |
| Will Revocation Upon Separation | Revoked after 2 years separate and apart or separation agreement |
| RRSP/RRIF Beneficiary | NOT automatically revoked; requires manual update |
| Life Insurance Beneficiary | NOT automatically revoked; requires manual update |
| Power of Attorney | Should be revoked immediately upon separation |
| Probate Fees | $25 per $5,000 for first $20,000; $5 per $1,000 thereafter |
| Application Deadline | 60 days after divorce to apply for marital property division |
| Common-Law Partner Status | Treated same as spouse under Bill 13 (cohabiting 2+ years) |
How Bill 13 Changes Estate Planning After Divorce in New Brunswick
New Brunswick's Bill 13 amendments to the Wills Act represent the most significant change to estate planning after divorce in the province's history. Under Section 15.02, when a marriage ends by divorce or is declared null, the following are automatically revoked: any devise or bequest of a beneficial interest in property to the former spouse, any appointment of the former spouse as personal representative or trustee, and any conferring of a general or special power of appointment on the former spouse.
The revocation applies in two scenarios. First, when a divorce judgment is finalized. Second, when spouses have been living separate and apart for at least two years at the testator's death, or when they were parties to a separation agreement aimed at separating and finalizing their affairs. The statute then construes the will as if the former spouse had predeceased the testator, meaning their share passes to other beneficiaries or the residuary estate.
This automatic revocation represents a departure from the previous law. Previously in New Brunswick, while marriage invalidated a will, separation, divorce, and subsequent common-law relationships did not automatically affect will provisions. Individuals had to proactively update their wills after divorce. The new amendments modernize New Brunswick's approach to align with other Canadian provinces that already have similar automatic revocation provisions.
Under the amendments, common-law partners who have cohabited continuously in a conjugal relationship for at least two years are treated the same as married spouses for revocation purposes. This means the automatic revocation applies equally when a common-law relationship ends.
Why RRSP and RRIF Beneficiary Designations Require Immediate Attention
RRSP and RRIF beneficiary designations are not automatically revoked by divorce in any Canadian province, including New Brunswick. A separated spouse, whether divorced or not, does not automatically lose their status as designated beneficiary. Unless you remove their name as beneficiary, your former spouse or partner remains entitled to your RRSP and RRIF assets upon your death, regardless of what your updated will states.
The consequences of failing to update these designations can be severe. In documented cases, a widow discovered that her husband's ex-wife was still designated as the sole beneficiary on his RRSP accounts. Despite an updated will naming the widow as beneficiary, and despite a divorce agreement where both ex-spouses signed away rights to each other's assets, the widow received nothing from these accounts. The beneficiary designation on file with the financial institution overrode both the will and the divorce agreement.
To change your RRSP or RRIF beneficiary after divorce, you must complete a new designation form with your financial institution. The most recent valid designation form overrides all previous ones. You can change or revoke your beneficiary at any time while you remain mentally capable. Consider naming contingent beneficiaries as well, specifying who receives the funds if your primary beneficiary predeceases you.
For tax-efficient transfers during divorce, the Income Tax Act allows one spouse to make a direct RRSP or RRIF transfer to the other spouse tax-free, provided the transfer is specified in the divorce settlement or written separation agreement. This allows any amount to be transferred from one RRSP to an ex-spouse's RRSP with no immediate tax impact and no reduction to contribution room.
Life Insurance Beneficiary Designations in New Brunswick
New Brunswick's Insurance Act governs life insurance beneficiary designations, and divorce does not automatically revoke an ex-spouse as beneficiary. You must take explicit action to change your beneficiary designation after divorce. Under the New Brunswick Insurance Act, a beneficiary can be revoked by an instrument signed by the policy owner, or by will, provided the revocation expressly relates to the designation.
There are two types of beneficiary designations: revocable and irrevocable. Most designations are revocable, meaning the policy owner can change them at any time by completing a change of beneficiary form with the insurance company. Irrevocable designations require the written consent of the named beneficiary before any change can be made.
Separation agreements and domestic contracts can revoke a beneficiary designation if certain requirements are met. In the New Brunswick case Eccleston Estate v Eccleston, the court discussed how domestic contracts can revoke a beneficiary if the court finds the intention of the deceased to be unequivocal and clear that the existing designated beneficiary should be revoked, and that all necessary steps had been taken. General revocation language in a new will, such as "I revoke all earlier wills and testamentary dispositions," is typically not express enough to revoke a beneficiary designation according to most New Brunswick case law.
Consider whether life insurance should continue naming your ex-spouse as beneficiary. Divorce agreements often require one spouse to maintain life insurance coverage naming the ex-spouse as beneficiary to secure ongoing spousal support or parenting time obligations. If your agreement includes such provisions, changing the beneficiary could put you in breach of the agreement.
Power of Attorney Revocation After Separation or Divorce
New Brunswick's Enduring Powers of Attorney Act, which came into effect in July 2020, governs powers of attorney in the province. Unlike wills under the new Bill 13 amendments, powers of attorney naming your spouse as attorney are not automatically revoked upon divorce or separation. You must take explicit steps to revoke your existing power of attorney and create a new one.
The Enduring Powers of Attorney Act allows you to create an Enduring Power of Attorney for property, for personal care, or for a combination of both. A property attorney has the power to deal with your financial and business affairs. A personal attorney makes health care and lifestyle decisions, including medical treatments, living arrangements, and social activities.
To revoke an existing power of attorney, you must complete a formal revocation document. New Brunswick requires that you make an Enduring Power of Attorney for property with the assistance of a lawyer, who must sign and provide a witness statement. The same formalities apply to revocation. After completing the revocation, you should notify your former spouse in writing that they are no longer your attorney, and retrieve any original or certified copies of the power of attorney document if possible.
Consider creating new powers of attorney immediately upon separation, naming trusted family members, friends, or professional fiduciaries as your attorneys. Waiting until divorce is finalized leaves a gap during which your separated spouse could potentially exercise authority under the existing power of attorney if you become incapacitated.
Updating Your Will After Divorce: Step-by-Step
While Bill 13 automatically revokes gifts to your ex-spouse, creating a new comprehensive will after divorce remains essential for estate planning in New Brunswick. The automatic revocation treats your ex-spouse as if they predeceased you, but this may not produce the distribution you actually want. Your residuary beneficiaries will receive your ex-spouse's share, which might not align with your intentions.
Your new will should address several key elements. First, name new beneficiaries for all assets previously bequeathed to your ex-spouse. Second, appoint new executors and trustees if your ex-spouse held these roles. Third, name new guardians for minor children if applicable, keeping in mind that testamentary guardian appointments are subject to court approval and the best interests of the child. Fourth, update any testamentary trusts that named your ex-spouse as trustee or beneficiary.
Under Bill 13, the minimum age to make a will in New Brunswick is being lowered to 16 from 19. This allows young people with assets to plan for the future. If you have children between 16 and 19 with their own assets, consider whether they should create wills naming their own beneficiaries.
The cost of preparing a new will in New Brunswick varies. Simple wills may cost $300 to $500, while more complex estates with trusts, business interests, or blended family considerations may cost $1,000 to $3,000 or more. These fees are separate from probate fees, which apply after death.
Probate Fees and Estate Administration Costs
New Brunswick probate fees are outlined in Schedule A of the Probate Court Act. The fee structure as of January 2026 is calculated as a tiered percentage of estate assets subject to probate. For most estates, the fee equals $25 per $5,000 for the first $20,000 of estate value, plus $5 per additional $1,000 of gross value. There is also a distribution fee of 0.2% of assets at time of distribution, with a $40 minimum if the estate is $20,000 or less.
For example, an estate valued at $500,000 would incur probate fees of approximately $2,500 at time of death ($100 for the first $20,000 plus $2,400 for the remaining $480,000), plus distribution fees of approximately $1,000 (0.2% of $500,000).
Real property values for probate purposes should be calculated net of encumbrances such as mortgages and liens. This can significantly reduce probate fees for properties with outstanding mortgages.
Executor compensation in New Brunswick is governed by the Trustees Act, which provides that executors are entitled to fair and reasonable compensation. A typical base fee for a standard estate is 3% of the gross estate value at time of distribution. For estates that take significant time to settle, courts may allow an annual fee of approximately 0.4% of assets under management. Courts may also allow additional fees for extraordinary services such as overseeing real estate sales, running a business, conducting litigation, or preparing tax returns.
Marital Property Division and Estate Planning Timing
The interaction between marital property division and estate planning requires careful coordination after divorce. Under the New Brunswick Marital Property Act, applications for property division must be filed within 60 days of the divorce judgment. Missing this deadline can result in loss of property division rights.
New Brunswick follows an equal division model for marital property. Under section 2 of the Marital Property Act, child care, household management, and financial provision are recognized as joint responsibilities of equal importance, and each spouse is entitled to an equal share of marital property and bears an equal share of marital debts. The presumptive starting point is a 50/50 split of family assets.
Family assets include property owned by one or both spouses that was ordinarily used for shelter, transportation, household, educational, recreational, or social purposes. This encompasses the matrimonial home, personal investments, automobiles, household goods, pensions, and similar assets. Business assets are generally exempt from division under section 8 of the Marital Property Act, though exceptions apply.
Wait until property division is finalized before executing your new estate plan. The division may significantly alter your asset base, requiring adjustments to your will, beneficiary designations, and overall estate planning strategy. Assets you expected to retain may be transferred to your ex-spouse, while assets you expected to lose may remain in your estate.
Trusts and Divorce: What Happens to Trust Interests
Trusts require special consideration in estate planning after divorce in New Brunswick. Under the Marital Property Act, property over which a spouse has a power of appointment exercisable in their own favour is treated as a family asset if the underlying property would qualify as a family asset if owned directly. Shares in corporations or interests in partnerships or trusts owned by a spouse may also be considered family assets based on the value of the benefit the spouse holds.
If you created a trust during marriage naming your spouse as beneficiary or trustee, review the trust document to determine whether you retained the power to revoke or amend the trust. Revocable trusts can be amended to remove your ex-spouse as beneficiary or trustee. Irrevocable trusts may require court intervention to modify, particularly if your ex-spouse has vested beneficial interests.
The Marital Property Act abolished the presumption of advancement between spouses. Instead, the rule of law applying a presumption of resulting trust applies as if the parties were not married, except that property held as joint tenants is presumed to give each spouse a one-half beneficial interest upon severance. This affects how trust contributions during marriage are characterized for property division.
Spousal Support and Estate Planning Obligations
Spousal support obligations under the federal Divorce Act can affect your estate planning. Under the Divorce Act (R.S.C. 1985, c. 3), spousal support serves several purposes: compensating a spouse who sacrificed earning capacity during the marriage, compensating for ongoing care of children, and helping a spouse in financial need arising from the marriage breakdown.
Your divorce agreement or court order may require you to maintain life insurance or other assets to secure ongoing spousal support obligations. Failure to maintain required coverage or beneficiary designations could put your estate in breach of the agreement, potentially resulting in claims against the estate by your ex-spouse.
Consider whether your estate plan adequately addresses what happens if you die while still obligated to pay spousal support. Your estate may remain liable for arrears, and depending on the terms of your agreement or order, may be liable for ongoing support. Work with your lawyer to ensure your estate plan accounts for these obligations through adequate life insurance, designated assets, or other mechanisms.
Common-Law Partners and Estate Planning After Separation
Under the Bill 13 amendments, common-law partners who have cohabited continuously in a conjugal relationship for at least two years receive the same treatment as married spouses for will revocation purposes. When such a relationship ends, gifts to the former common-law partner are automatically revoked under the same conditions that apply to married spouses.
However, the Marital Property Act applies only to legally married couples. Common-law partners in New Brunswick do not have automatic rights to equal property division and must rely on general legal principles such as unjust enrichment or constructive trust to claim an interest in a partner's property. This creates different estate planning considerations for common-law partners than for married spouses.
The Devolution of Estates Act, which governs intestate succession, only recognizes the entitlement of legally married spouses. Common-law partners cannot inherit under intestacy rules. If you want your common-law partner to inherit, you must make a will naming them as beneficiary. After separation from a common-law partner, ensure your will reflects your current intentions, as the automatic revocation under Bill 13 may not produce the distribution you want if no will exists or if the will is outdated.
Intestate Succession After Divorce in New Brunswick
Under the Devolution of Estates Act, a divorced spouse has no inheritance rights because they are no longer legally married. However, a separated but not divorced spouse retains full spousal inheritance rights under intestacy. This creates significant risk if you die before your divorce is finalized.
If you die intestate with a surviving spouse and one child, your spouse receives any marital property and one-half of the residue. The other half goes to your child, held in trust by their guardian until age 19. If you leave a spouse and multiple children or grandchildren, your spouse receives marital property and one-third of the residue, with children and grandchildren sharing the remaining two-thirds. If you leave a spouse but no children or grandchildren, your spouse inherits everything.
To prevent your separated spouse from inheriting under intestacy, either finalize your divorce or execute a new will that explicitly addresses distribution during the separation period. New Brunswick law reform discussions have considered adopting provisions that would disentitle separated spouses from intestate inheritance, similar to provisions in some other provinces, but current law still provides inheritance rights to separated spouses.
Estate Planning Checklist After Divorce in New Brunswick
Complete these steps to ensure comprehensive estate planning after divorce:
- Execute a new will naming new beneficiaries, executors, and trustees
- Update RRSP and RRIF beneficiary designations with each financial institution
- Update TFSA beneficiary designations
- Update life insurance beneficiary designations or confirm coverage requirements under divorce agreement
- Revoke existing powers of attorney naming your ex-spouse
- Create new enduring powers of attorney for property and personal care
- Review and update any trust documents where you serve as grantor with power to amend
- Confirm pension beneficiary designations with your employer or pension administrator
- Review joint accounts and remove ex-spouse from any accounts that should not be held jointly
- Update digital asset planning, including password managers and digital executor designations
- Coordinate estate plan with marital property division timeline
- Review estate plan with lawyer after property division is finalized to account for changes in asset base