Introduction
The official term for dying without a will in Ontario, or anywhere else, is that they have died intestate. The consequences of dying without a will in Ontario are significant. A recent Court decision about this famous Canadian’s Estate highlights the issue.
Toller James Montague Cranston, deceased
Toller Cranston was a popular Canadian figure skater and artist. He passed away on January 23, 2015, in Mexico where he lived for some
23 years. The departed passed away without leaving a will. His 3 siblings, Phillippa Baran, Goldie Cranston and Guy Cranston were proclaimed the sole heirs of the Estate by the Second Civil Court in San Miguel de Allende, Guanajuato, Mexico in August 2015.
Phillippa is the Estate Trustee. She was initially named “Executor” of the estate by the court in Mexico on September 2015. A Certificate of Appointment of Foreign Estate Trustee’s Nominee as Estate Trustee without a Will was issued by the Superior Court of Justice in Ottawa on December 8, 2016. This also includes a certificate of appointment of estate trustee without a will.
The assets of the Estate were located both in Canada and in Mexico. Upon his death, the Estate consisted of about 20,000 items of original art, bank accounts and other property. The initial worth of the Estate was around $6,258,520.
According to Phillippa, the unsold or unrealized property includes $429,958 in money and around $1,577,371 in the artwork. The deceased’s original artwork was placed on consignment at several art galleries for sale.
Siblings disagree on what to do with the remaining original artwork
At first, the siblings collaborated to carry out what needed to be done in the Estate. After Toller Cranston’s death, they took a trip to Mexico to deal with the Estate. Along with selling the real estate, a variety of paintings as well as other assets which were split between them.
Consequently, Goldie and Guy Cranston came to be worried regarding Phillippa’s management of the Estate. They stated that Phillippa has actually mishandled the Estate and they are worried about how she will deal with the remaining Estate assets.
Especially bothering to Guy and Goldie Cranston is Phillippa’s views on dealing with the rest of the Estate. It is the artwork that is a significant emphasis on disagreement. These are among the main reasons Goldie and Guy are asking that an Estate Trustee During Litigation be assigned right now.
Goldie and Guy were particularly disturbed over the following:
- Concerning the artwork in storage, they have repeatedly requested that they receive their share of the actual artwork. They don’t want or need it to be sold. Phillippa has ignored their requests.
- There was evidence that the art gallery where a major amount of artwork was placed on consignment was having financial difficulties. The concern was that the gallery may not continue in business and the artwork could be lost.
- The law firm acting for Philippa also acts for the art gallery in financial trouble.
- Neither Guy nor Goldie requires the paintings to be sold. In fact, Guy owns an art gallery in Nova Scotia. They do not want to lose up to 50% of the value of the artwork they are entitled to because of art gallery commissions. Therefore, Phillippa’s insisting that the artwork must be sold is an unreasonable loss for them.
- Toller Cranston’s legacy. They say that Phillippa’s actions related to marketing and licensing opportunities that the artwork could yield once the passing of accounts is concluded are unreasonable. She is more focused on that, without any consultation with the other heirs, than she is in administering the assets currently in the Estate.
- They are surprised that the Estate Trustee has paid herself the amount of $528,228 from the Estate. They also have issues regarding the $315,774 spent by Phillippa in legal fees.
Guy and Goldie request the appointment of an Estate Trustee During Litigation
Goldie and Guy Cranston state that Phillippa ought to be replaced as Estate Trustee in order to avoid causing incurable damage to the heirs if the artwork is sold off in the current fashion. They propose that an Estate Trustee During Litigation should be designated to protect the assets of the Estate and to disperse the artwork in-kind amongst the heirs.
They nominated a specific lawyer as the Estate Trustee During Litigation. The Court found that his credentials are not a problem and that he is capable of acting in that capacity. Phillippa opposed this request.
The Court reviewed the relevant case law. The decision also states that Phillippa’s handling of the artwork in either marketing it over the arguments of the other heirs or in creating strategies when it comes to the future rights of the artwork without notifying or speaking with Goldie or Guy is unreasonable. The Court also found that it runs opposite to her
responsibilities as an Estate Trustee to act in the best interests of the heirs. The Court concluded that Phillippa remains in a conflict of interest.
The Court’s decision
The Court ordered that:
- The lawyer is selected to act as the Court-appointed Estate Trustee During Litigation of the estate of Toller James Montague Cranston.
- He is to act without posting an Administration Bond.
- He will immediately file his written Consent with the Court and take immediate control of all properties of the Estate.
- Phillippa will totally co-operate in the hand-over of the Estate property and documents
- The Estate Trustee During Litigation is to examine and prepare for circulation a plan for the distribution of and liquidation of the remaining artwork.
- To determine his plan, he must consult with all three heirs.
Conclusion – Dying without a will in Ontario
Dying without a will in Ontario is not helpful to anyone, especially your loved ones you wanted to have the benefit of your property when you die. There are many times where a neutral third party should be considered either to act as Estate Trustee or Estate Trustee Under Litigation. Consider these examples:
- Moms and dads select all their kids to serve as Estate Trustee. Each child has a various degree of abilities, and some none, in what is called for to administer an Estate. Some children identify that either they do not have the necessary abilities or simply do not desire the obligation. Anxiousness, clashes and pain results.
- Many affluent family members have disagreements over exactly how the family wealth should be handled. These fights can become very public and expensive when they resort to the courts.
- A person passes away with assets yet no will. Many people think, deservedly or not, that they are entitled to the assets in the deceased’s estate.
- You are a lawyer, estate planner or financial advisor. You hesitantly consented to be the Estate Trustee of the estate of the person that was the owner of your best corporate client. The person passes away and you find yourself in the middle of an illogical dispute of passion between the heirs. The problem is so extreme, it threatens your capability for maintaining the company as your client and therefore your future earnings.
- As the Estate Trustee, you are not in conflict. Nonetheless, the time required to handle all the complicated estate problems is like a second full-time job. It is having a negative impact on your business as you cannot devote the necessary time to it. You have to get out, however, you do not have an option to replace yourself.
- The heirs and the Estate are involved in significant expensive lawsuits. There is no end in sight. Nevertheless, there are live problems that require to be attended to in managing the Estate so that the assets are protected and do not dissipate. There is an instant need for an Estate Trustee Under Litigation.
These are all real-life examples. Nothing has been made up. This is why we started Smith Estate Trustee Ontario.
If you find yourself in the middle of an Estate problem, contact the Smith Estate Ontario Team. We will sit down with you and listen to the issues. We will provide you with a plan for moving forward and ending the pain, frustration and cost being caused by the Estate issues. There is no charge for this initial consultation.
Call the Smith Estate Trustee Ontario Team today. We will help you move forward. We do so with compassion, experience and impartiality. Call the Smith Estate Trustee Ontario Team now.
