Tag: estate administration

WHEN FAMILY DISPUTES PUT WILLS AND EXECUTORS AT ODDS: OUR COMPLETE GUIDE ON YOUR RIGHTS WHEN THINGS GO WRONG

Post author By Brandon Smith
Post date April 7, 2025

wills and executors

Wills and Executors: Introduction

Losing a parent hurts deeply. During this difficult time, families should unite to honour their loved one and handle their affairs. But what happens when the person named in the will to manage everything – the executor – isn’t doing their job properly?

If you’re worried about how an executor is handling your parent’s will, you’re not alone. While your parent chose this person in their will, that appointment isn’t permanent, especially if the executor is causing harm to beneficiaries like you.

Wills and Executors Real-Life Example: When Executors Go Wrong

A recent court case, Spellman v. Spellman, 2025 ONSC 1187 (CanLII), shows just how serious these situations can become. In this case, a brother named as executor mishandled his father’s estate so badly that his sister had to take him to court. This Ontario case highlights the problems that can arise with wills and executors, and the legal remedies available.

In this comprehensive guide, we’ll explore everything you need to know about wills and executors in Ontario, including what happens when things go wrong.

Understanding Wills and Executors

Definition and Purpose

A will is a legal document that outlines how you want your property distributed after death. In Ontario, wills are governed by the Succession Law Reform Act, R.S.O. 1990, c. S.26. The primary purpose of a will is to ensure your wishes are followed, to name an executor to manage your estate, and to potentially appoint guardians for minor children.

Ontario law recognizes three types of wills: formal wills (typed and signed with witnesses), holograph wills (entirely handwritten and signed by the testator), and international wills (for those with assets in multiple countries). Each must meet specific requirements to be valid under Ontario law.

Key Elements of a Will

For a will to be legally valid in Ontario, it must contain certain elements:

Testamentary intent – clear indication that this document is intended to be your will
Testator information – your full name and declaration that this is your last will
Revocation clause – cancelling any previous wills
Executor appointment – naming the person(s) who will administer your estate
Distribution of assets – specific instructions for who gets what
Signatures – yours and those of two witnesses (except for holograph wills)

Ontario law requires that the testator (the person making the will) be at least 18 years old and of “sound mind,” meaning they understand what a will does, what assets they own, who their potential beneficiaries are, and how these elements connect in the will.

Common Misconceptions

Many Ontario residents hold misconceptions about wills and executors that can lead to problems:

Misconception #1: Verbal promises count as much as written instructions. In Ontario, verbal promises about inheritance hold no legal weight against written instructions in a valid will. Always ensure important wishes are properly documented.

Misconception #2: The oldest child automatically becomes the executor. There is no legal requirement that the oldest child (or any family member) must be the executor. This is entirely the testator’s choice.

Misconception #3: Executors can do whatever they want. Executors in Ontario have a fiduciary duty to act in the best interests of all beneficiaries and follow the will’s instructions. They can be held personally liable for breaches of this duty.

Misconception #4: A will cannot be challenged. Ontario’s Succession Law Reform Act allows wills to be challenged on several grounds, including improper execution, lack of testamentary capacity, undue influence, or fraud.

Wills and Executors: Role of an Executor

Definition and Responsibilities

An executor (also called an estate trustee in Ontario) is the person named in a will to administer the deceased’s estate. Their legal duties under Ontario law include:

Locating the original will and filing it with the Superior Court of Justice for probate
Arranging the funeral according to the will’s instructions
Notify all beneficiaries named in the will
Creating an inventory of all assets and liabilities
Protecting the estate assets until distribution
Filing final tax returns and obtaining tax clearance from the Canada Revenue Agency
Distributing the assets according to the will’s instructions
Providing a detailed accounting of all financial transactions to beneficiaries

The Ontario Trustee Act, R.S.O. 1990, c. T.23 sets out the standard of care required: executors must exercise the care, skill, diligence and judgment that a prudent investor would exercise in making investments.

Steps to Take After Death

When serving as an executor in Ontario, these are the immediate steps to take after someone dies:

Secure the original will – You’ll need this to apply for the Certificate of Appointment of Estate Trustee (probate).
Register the death – Obtain a death certificate from the funeral director, which you’ll need for multiple purposes.
Notify relevant parties – This includes Service Canada (for CPP/OAS benefits), banks, insurance companies, and the Canada Revenue Agency.
Apply for probate – In Ontario, this is called a Certificate of Appointment of Estate Trustee. This application goes to the Superior Court of Justice and includes filing an Estate Information Return with the Ministry of Finance within 180 days.
Place a Notice to Creditors – This protects the Estate Trustee from personal liability for unknown debts. Historically, it was published in local newspapers. More recently, advertising for creditors on the NoticeConnect online portal has replaced publishing a notice in the local newspaper.

The Ontario Estate Administration Tax (EAT), formerly called probate fees, must be paid based on the estate’s value. Current rates are $15 per $1,000 for estates over $50,000, with the first $50,000 taxed at $250.

Managing and Protecting Estate Assets

Ontario law places strict requirements on executors regarding estate assets:

Estate account – Open a separate estate bank account for all financial transactions
Asset security – Ensure valuable property is secured, insured, and maintained
Prudent investments – Follow the “prudent investor rule” for any investments
Record keeping – Maintain detailed records of all transactions
Asset valuation – Obtain professional appraisals of significant assets

In the Spellman case, the executor failed to properly manage and account for estate assets, which directly violated Ontario’s Trustee Act. This resulted in significant financial penalties against the executor.

Wills and Executors: Choosing an Executor

Personal vs. Professional Executor

Ontario law allows you to name either personal connections (family/friends) or professionals (lawyers/trust companies/Smith Estate Trustee Ontario) as executors:

Personal Executors:

Cost-effective (may serve without compensation)
Familiar with family dynamics
May have personal knowledge of your wishes

Professional Executors:

Experienced in estate administration
Objective third party in family conflicts
Knowledge of tax and legal requirements
Continuity (won’t die or become incapacitated)

The complexity of your estate, family relationships, and the competence of potential personal executors should guide this decision.

Factors to Consider

When choosing an executor for your Ontario will, consider:

Financial capability – The executor should understand basic financial matters and be capable of working with professionals when needed.
Trustworthiness – Ontario law holds executors to a high fiduciary standard; choose someone with impeccable integrity.
Availability – The role typically requires 1-2 years of active involvement.
Location – While non-residents can serve as executors in Ontario, they face additional requirements and may need to post a bond.
Personal qualities – Organization, attention to detail, and communication skills are essential.
Age and health – Choose someone likely to outlive you and be physically and mentally capable of serving.

Ontario allows for alternate executors to be named in case your first choice is unable or unwilling to serve.

Implications of Multiple Executors

Ontario wills can name multiple executors who must act jointly unless the will specifies otherwise. Potential benefits include:

Shared workload and responsibility
Complementary skills and knowledge
Checks and balances in decision-making

However, this arrangement can also create challenges:

Decision gridlock if executors disagree
Increased administration time and costs
Communication difficulties

If you choose multiple executors in Ontario, the will should specify whether they must act jointly (all decisions require unanimous agreement) or severally (each can act independently).

Wills and Executors: Executor Compensation

Standard Practices

In Ontario, executors are entitled to “fair and reasonable compensation” for their services, even if the will doesn’t mention compensation. The Trustee Act doesn’t specify exact amounts, but Ontario courts have established guidelines:

2.5% of capital receipts
2.5% of capital disbursements
2.5% of revenue receipts
2.5% of revenue disbursements
An annual care and management fee of 0.4% of the average gross value

The total typically ranges from 3-5% of the estate value, depending on complexity, time involved, results achieved, and executor expertise.

How Compensation is Determined

Ontario courts consider these factors when assessing appropriate executor compensation:

Size of the estate – Larger estates may justify higher percentage fees
Time spent – Detailed time records strengthen compensation claims
Complexity – Business assets, litigation, or tax complications may justify higher fees
Skill and expertise required and applied
Success in administering the estate efficiently

Executors should keep detailed records of their activities and time spent, as this documentation is critical if compensation is challenged.

Handling Disputes over Fees

Disputes over executor compensation are common in Ontario. If beneficiaries object to proposed fees, these are the typical steps:

The executor “passes their accounts” by filing a formal accounting with the court
Beneficiaries can file objections to specific items or overall compensation
A hearing is held before a judge, who makes the final determination

In contentious cases like Spellman v. Spellman, the court can even deny compensation entirely if the executor has breached their fiduciary duties or mismanaged the estate.

Legal Considerations for Wills and Executors

Jurisdictional Differences

While this guide focuses on Ontario law, executors should be aware that different provinces have varying rules.

Ontario’s Estate Administration Tax is higher than some provinces but allows for multiple will strategies to reduce taxes
Quebec uses civil law rather than common law, with notarial wills being the norm
British Columbia has specific rules regarding will variation claims
Alberta has different probate fee structures

If the deceased owned property in multiple provinces or countries, executors may need to apply for probate in each jurisdiction, significantly complicating the process.

Executors and Beneficiaries

Ontario law creates a special relationship between executors and beneficiaries:

Fiduciary duty – Executors must put beneficiaries’ interests first
Duty to inform – Beneficiaries have a right to basic information about the estate
Impartiality – Executors must treat all beneficiaries fairly
No self-dealing – Executors cannot purchase estate assets without court approval

When executors are also beneficiaries (common in family situations), they must be especially careful to separate their interests from their executor duties. The Spellman case demonstrates how severely Ontario courts view executor self-dealing.

Corporate Trustees as Executors

Ontario allows trust companies to serve as executors. Advantages include:

Professional expertise in estate administration
Continuity (no risk of death or incapacity)
Objectivity in family disagreements
Infrastructure for record-keeping and reporting

However, corporate executors charge professional fees (typically 3-5% of the estate) and may lack personal knowledge of family dynamics. They’re usually most appropriate for complex or high-value estates or when no suitable individual is available.

Smith Estate Trustee Ontario acts as an independent court-appointed estate trustee. We act impartially as an officer of the court, while being sensitive to the family dynamics.

Wills and Executors: Will Disputes and Resolutions

Common Causes for Disputes

Ontario courts frequently see these common triggers for will disputes:

Validity challenges – Claims that the will wasn’t properly executed, the testator lacked capacity, or was unduly influenced
Executor misconduct – Similar to the Spellman case, where the executor breached their fiduciary duties
Interpretation issues – Unclear or ambiguous language in the will
Dependent support claims – Under Ontario’s Succession Law Reform Act, dependents can claim adequate support if the will doesn’t provide for them
Family law claims – Surviving spouses have special rights under the Family Law Act, R.S.O. 1990, c. F.3

The Ontario Limitations Act, 2002, S.O. 2002, c. 24, Sched. B generally provides a two-year window for most estate-related claims.

Legal Recourse and Mediation

When disputes arise over wills and executors in Ontario, these resolution options exist:

Negotiation – Often the first step, with beneficiaries and executors attempting to resolve issues directly
Mediation – A neutral third party helps facilitate a voluntary resolution (mandatory in some Ontario jurisdictions before court proceedings)
Court applications – Formal proceedings where a judge makes a binding decision
Passing of accounts – A specific court process where executors present a detailed accounting for approval

Ontario courts have broad powers to:

Remove and replace problematic executors
Order the return of misappropriated assets
Interpret ambiguous will provisions
Award compensation for damages caused by executor misconduct

Wills and Executors: When No Executor is Named

Appointment of Administrator

If someone dies without naming an executor in their will (or dies without a will), the Ontario Superior Court of Justice can appoint an administrator. The Estates Act establishes this priority order:

Spouse
Children
Grandchildren
Parents
Siblings
Next of kin

The appointed administrator has essentially the same duties and powers as an executor, but typically must post a bond unless the court waives this requirement.

Legal Process and Challenges

The process for appointing an administrator in Ontario involves:

Filing an Application for Certificate of Appointment of Estate Trustee Without a Will (if no will exists) or With a Will (if there’s a will but no named executor)
Providing notice to all interested parties
Paying the required Estate Administration Tax
Posting a bond, in many cases

Challenges in administrator appointments often include:

Competing applications from multiple family members
Disputes over who is best suited to serve
Difficulties in obtaining the required bond
Family conflicts that make administration difficult

Smith Estate Trustee Ontario acts many times as a court-appointed administrator where a person dies intestate (without a will).

Wills and Executors: Renouncing Executorship

Reasons for Renunciation

Ontario law allows named executors to decline the role, provided they haven’t “intermeddled” in the estate. Common reasons include:

Health issues – Physical or mental health challenges that make the role difficult
Distance – Living far from where the estate needs to be administered
Time constraints – Inability to devote necessary time to executor duties
Complexity – Feeling unequipped to handle a complex estate
Family conflict – Wanting to avoid being caught in family disputes

In the Spellman case, Dawn initially renounced her right to be an administrator, showing that this is sometimes done to facilitate the process—though in this case, it unfortunately led to problems.

To properly renounce in Ontario, the executor must file a Renunciation of Prior Right to a Certificate of Appointment of Estate Trustee (Form 74.18) with the court before taking any actions that would constitute accepting the role.

Smith Estate Trustee Ontario also acts in situations where the named executor(s) renounces their role.

Frequently Asked Questions About Wills and Executors in Ontario

What is a will in Ontario, and what key elements must it contain to be legally valid?

A will in Ontario is a legal document that outlines how you want your property distributed after death. Under the Succession Law Reform Act, a valid will must include:

Clear indication that it’s intended to be your will (testamentary intent)
Your full name and a declaration that this is your last will
A statement cancelling any previous wills (revocation clause)
Appointment of an executor to manage your estate
Instructions for distributing your assets
Your signature and those of two witnesses (except for holograph wills)

To create a valid will, you must be at least 18 years old and of “sound mind,” meaning you understand what a will does, what you own, who your potential beneficiaries are, and how these connect in your will.

What are some common misconceptions about wills and executors in Ontario?

Several misunderstandings can lead to problems with wills and executors:

Verbal promises don’t count: In Ontario, what you’ve written in your will overrules any verbal promises you made about inheritance.
No automatic executor: The oldest child or any specific family member doesn’t automatically become the executor – this choice belongs solely to the person making the will.
Executors have limits: Executors must follow the will’s instructions and act in all beneficiaries’ best interests, facing personal liability if they don’t.
Wills can be challenged: Under the Succession Law Reform Act, wills can be contested for reasons like improper execution, lack of mental capacity, undue influence, or fraud.

What responsibilities do executors have after someone passes away?

Executors in Ontario (also called estate trustees) must:

Locate the original will and file for probate with the Superior Court of Justice
Arrange the funeral according to the will’s instructions
Notify all beneficiaries named in the will
Create a complete inventory of all assets and debts
Protect estate assets until they’re distributed
File final tax returns and get clearance from the Canada Revenue Agency
Distribute assets according to the will’s instructions
Provide beneficiaries with detailed financial accounting

Ontario’s Trustee Act requires executors to follow the “prudent investor rule” when managing estate investments.

What immediate steps should an executor take after someone dies?

If you’re serving as an executor in Ontario, take these steps right away:

Secure the original will for your probate application
Get a death certificate from the funeral director
Notify important organizations like Service Canada, banks, insurance companies, and the Canada Revenue Agency
Apply for probate (Certificate of Appointment of Estate Trustee) with the Superior Court of Justice
File an Estate Information Return with the Ministry of Finance within 180 days
Place a Notice to Creditors in local newspapers to protect yourself from unknown debts
Pay the Estate Administration Tax based on the estate’s value

How are executors compensated, and what can beneficiaries do if they disagree with the fees?

Ontario executors are entitled to “fair and reasonable compensation,” typically based on court guidelines:

2.5% of capital receipts
2.5% of capital disbursements
2.5% of revenue receipts
2.5% of revenue disbursements
0.4% annual care and management fee based on average gross value

Total compensation usually ranges from 3-5% of the estate’s value, depending on factors like size, time spent, complexity, skill required, and success in administration.

If beneficiaries dispute these fees, the executor must “pass their accounts” by filing a formal accounting with the court. Beneficiaries can then object, leading to a hearing where a judge makes the final decision. In cases of executor misconduct, as seen in the Spellman case, the court may deny compensation entirely.

What’s the difference between choosing a personal executor versus a professional executor?

When choosing between personal and professional executors for your Ontario will, consider:

Personal Executors (family/friends):

More cost-effective (may serve without compensation)
Better understanding of family dynamics
Personal knowledge of your wishes

Professional Executors (lawyers/trust companies):

Experience in estate administration
Objectivity during family conflicts
Knowledge of tax and legal requirements
Continuity (won’t die or become incapacitated)

Your decision should be based on your estate’s complexity, family relationships, and the capabilities of potential personal executors.

What legal options do beneficiaries have if an executor isn’t doing their job properly?

If you’re concerned about executor misconduct in Ontario, as illustrated in the Spellman v. Spellman case, you can:

Try negotiation or mediation first
If unsuccessful, apply to the court for:
- Removal and replacement of the executor
- Return of misappropriated assets
- Interpretation of unclear will provisions
- Compensation for damages caused by executor misconduct

Ontario courts take executor misconduct seriously, as shown in the Spellman case, and will intervene to protect beneficiaries’ interests when necessary.

What happens if someone dies without a will or without naming an executor?

If someone dies without a will (intestate) or without naming an executor in Ontario, the Superior Court of Justice will appoint an administrator. The Estates Act establishes this order of priority:

Spouse
Children
Grandchildren
Parents
Siblings
Next of kin

The appointment process requires:

Filing an Application for Certificate of Appointment of Estate Trustee
Notifying all interested parties
Paying the Estate Administration Tax
Usually, posting a bond

Complications can arise from competing applications, disputes over who is most suitable, difficulties obtaining a bond, or existing family conflicts. Once appointed, the administrator has duties similar to an executor’s.

Wills and Executors: Protecting Your Rights Under Wills and Against Problem Executors

Family disputes over wills and executors create tremendous stress during an already difficult time. The Spellman case shows just how serious the consequences can be when executors neglect their duties.

While a will names a specific person as executor, Ontario courts have the power to remove and replace executors who breach their responsibilities. If you’re facing challenges with an executor who isn’t fulfilling their duties under a will, remember that legal options exist to protect your inheritance.

Whether you’re planning your estate, serving as an executor, or dealing with concerns about an existing executor, understanding Ontario’s laws on wills and executors is essential. Seek professional legal advice promptly to understand your specific situation and determine the best way forward for your family and your loved one’s legacy.

Wills and Executors: Seeking Professional Estate Trustee Solutions

When facing the complexities of estate administration or concerns about existing executors, professional expertise can make all the difference. Smith Estate Trustee Ontario, a specialized division of Ira Smith Trustee & Receiver Inc., offers independent court-appointed Estate Trustee services tailored to challenging situations. Our experienced team understands the intricacies of Ontario estate law and provides impartial administration when family disputes arise, when no suitable executor is available, or when professional oversight is needed.

As the Spellman case demonstrates, proper estate administration requires knowledge, integrity, and dedication to fiduciary duty. Whether you’re planning your estate, dealing with executor concerns, or need a professional trustee appointed by the court, Smith Estate Trustee Ontario delivers the expertise and objectivity your family deserves during difficult times.

Contact us today to learn how our professional Estate Trustee services can bring peace of mind and proper administration to complex estate matters.

The information provided in this blog is intended for educational purposes only. It is not intended to constitute legal, financial, or professional advice. Readers are encouraged to seek professional advice regarding their specific situations. The content should not be relied upon as a substitute for professional guidance or consultation. The authors, Ira Smith Trustee & Receiver Inc. and Smith Estate Trustee Ontario, and any contributors do not assume any liability for any loss or damage.

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Brandon Blog Post

GRIPPING ESTATE LITIGATION LIMITATION PERIODS: THE COURT OF APPEAL FOR ONTARIO SPEAKS

Post author By Brandon Smith
Post date October 14, 2024

Estate Introduction

Have you ever found yourself in a complicated situation, wishing you had understood the legal nuances before it was too late? I was recently reminded of this reality while reviewing the case of Ingram v. Kulynych Estate, 2024 ONCA 678 (CanLII). It serves as a poignant narrative about loss, timing, and the formidable landscape of estate litigation.

This case concerns the limitation period for an equitable trust claim against a deceased person’s assets. It involves a common-law spouse seeking a share of her former partner’s assets, who left her nothing in his Will. The case explores the different limitation periods applicable to estate claims when real property is involved. It examines whether the claim falls under the two-year limitation period for claims or the ten years for land claims.

In this Brandon’s Blog, I explore the case and the findings of the Court of Appeal for Ontario to allow for a better understanding of this complex area.

Types of Estate Litigation

Before getting into the case itself, it would help to understand the most common reasons for estate litigation. Most of this type of litigation can be divided into the following areas.

Will Contests

Will Challenges: Contesting the validity of a will, alleging that the testator lacked capacity, was unduly influenced, or was forged or altered without their knowledge or consent.
Lack of Capacity: This is raising capacity issues, that the testator lacked the mental capacity to make a Will, or that their capacity was impaired due to illness, disability, or other factors.
Undue Influence: Claims that someone exerted undue influence over the testator, causing them to make a will that is not in their best interests.
Missing or Lost Wills: Disputes over the location or authenticity of a Will, or allegations that a Will has been destroyed or lost.

Trust Disputes

Administration Disputes: Disputes between the estate trustee and beneficiaries over the administration of the estate, including issues related to accounting, tax returns, and distribution of assets.
Breach of Fiduciary Duty: Allegations that the estate trustee has breached their fiduciary duty, such as mismanaging assets, failing to account properly for all funds, or making unauthorized distributions.
Disputes over Gifts or Bequests: Disputes over the validity or interpretation of gifts or bequests made in the Will, including claims that the gift or bequest was made under duress or undue influence.
Disputes over Charitable Bequests: Disputes over the interpretation or validity of charitable bequests, including claims that the charitable organization is not entitled to the bequest or that the bequest is not being used for the intended purpose.

Beneficiary Disputes

Distribution Disputes: Disputes over the division of assets and/or distribution of assets, including the interpretation of the will, the validity of certain bequests, or the allocation of assets among beneficiaries.
Disputes over Assets: Disputes over the ownership or control of specific assets, such as real property, businesses, or investments.
Disputes over Executor or Trustee Removal: Disputes over the removal of an executor or estate trustee, or allegations that the executor or trustee has acted improperly or in a manner that is not in the best interests of the administration or beneficiaries.
Disputes over Taxes: Disputes over the calculation and payment of taxes, including claims that the estate trustee has failed to properly account for or pay taxes.

It’s essential to note that each case is unique, and the specific reasons for litigation can vary widely depending on the circumstances. If you’re involved in such a dispute, it’s crucial to seek legal advice from an experienced estate litigation lawyer to protect your rights and interests.

Factors Affecting Estate Litigation

This kind of litigation can be influenced by various factors, including:

Complexity: Multiple assets, beneficiaries, and potential heirs can be more prone to disputes and litigation.
Family Dynamics: Family relationships, conflicts, and power struggles can contribute to disputes, particularly when there are competing interests or claims.
Lack of Clear Communication: Inadequate or unclear communication between the testator, beneficiaries, and estate trustee can lead to misunderstandings, misinterpretations, and disputes.
Estate Planning: The quality and effectiveness of the estate plan, including the Will, trusts, and other documents, can impact the likelihood of disputes and litigation.
Capacity and Undue Influence: Allegations of lack of capacity or undue influence can arise when the testator’s mental or physical health is compromised, or when someone exerts influence over the testator.
Administration: Poor administration, including delays, mismanagement, or misappropriation of assets, can lead to disputes and litigation.
Tax and Financial Issues: Complex tax and financial issues, such as taxes, probate fees, and inheritance taxes, can contribute to disputes and litigation.
Cultural and Social Factors: Cultural and social factors, such as family traditions, customs, and expectations, can influence disputes and litigation.
Technology and Digital Assets: The increasing importance of digital assets, such as social media accounts, cryptocurrencies, and online storage, can create new challenges and disputes resulting in litigation.
Changes in Family Circumstances: Changes in family circumstances, such as divorce, remarriage, or the birth of children, can impact plans and lead to disputes and litigation.
Aging Population: The aging population and increasing life expectancy can lead to more complex planning and administration, increasing the likelihood of disputes and litigation.
Economic Factors: Economic factors, such as market fluctuations, inflation, and economic downturns, can impact the value of assets and contribute to disputes and litigation.
Legal and Regulatory Changes: Changes in laws, regulations, and court decisions can impact litigation, particularly in areas such as wills, trusts, and taxes.
Professional Fees and Expenses: The cost of professional fees and expenses, such as lawyers’ fees, accounting fees, and appraisal fees, can contribute to disputes and litigation over administration and distribution.
Time and Delay: The passage of time and delays in administration can lead to disputes and litigation, particularly if beneficiaries are left waiting for their inheritance.
Lack of Trust and Confidence: A lack of trust and confidence between the estate trustee, beneficiaries, and other parties involved can contribute to disputes and litigation.
Power of Attorney: The use of powers of attorney, particularly in cases where the person who is authorized to represent the not-yet-deceased person has broad powers, can lead to disputes and litigation over the management of the testator’s assets and affairs.
Charitable Bequests: Charitable bequests can create disputes and litigation, particularly if the charitable organization is not entitled to the bequest or if the bequest is not being used for the intended purpose.
Business Interests: Business interests and ownership structures can create complex disputes and litigation, particularly if there are competing interests or claims.
International Aspects: International aspects, such as foreign assets, foreign beneficiaries, or international planning, can add complexity and potential disputes to estate litigation.

These factors can interact with each other in complex ways, making estate litigation a challenging and nuanced area of law.

The Background of Ingram v. Kulynych Estate

The case of Ingram v. Kulynych unspools a compelling narrative regarding inheritance, emotional ties, and legal disputes. It centres on the passing of Henry Harry Kulynych and getting at the value of his estate. Let’s dig into the details to understand the stakes involved and the events that led to this legal action.

Overview of the Estate Case Details

Henry Harry Kulynych passed away in February 2017. His estate was valued at approximately $690,119.59. A notable part of this estate was a house located in The Town of Ajax, which later sold for $475,585.10 in March 2019. The value isn’t just a number; it represents years of life, relationships, and, of course, ambition.

But here’s the twist: he excluded Kathleen Ingram from his Will. Ms. Ingram claimed a common-law relationship with Mr. Kulynych dating back to 1999. This was not just a romantic partnership; she provided extensive emotional and financial support throughout their years together. Yet, despite these claims, his Will distributed his estate to his children from a previous marriage. A question lingers—what does it mean to be entitled to something that you believe you deserve?

Discussion of Kathleen Ingram’s Life Events Tied to Mr. Kulynych

Ms. Ingram’s life intertwines significantly with Henry’s. Their common-law relationship speaks volumes about emotional investments and shared experiences. For nearly two decades, they built a life together, undoubtedly filled with hopes and dreams. However, legally, that time means nothing without recognition in a Will.

Imagine dedicating years to someone you love, only to discover that your contributions are overlooked legally. Ms. Ingram must have felt a whirlwind of emotions. Grief, betrayal, and confusion likely permeated her life as she faced the reality of her situation following Henry’s death. She sought legal representation to voice her claims, driven not only by her feelings but also by the emotional ties that had developed over the years.

Overview of Legal Representation and Initial Claims

In March 2018, Ingram took a crucial step. She communicated her claims through a lawyer, marking a significant moment in her fight for recognition. It was unclear from the case if she was claiming at that time the dependant’s support. Nevertheless, she would not file a formal equitable trust claim until March 2021. This delay raised questions about the applicable limitation periods that govern estate claims.

Just think about it for a moment: the legal system is designed to ensure timely resolutions. The timing of claims matters immensely. As a legal expert once mentioned to me:

“Timing is everything in estate claims.”

This sentiment holds weight in any legal situation, especially in matters involving an estate.

Understanding the Implications

The legal intricacies surrounding this case primarily focus on limitation periods. The appeal primarily questioned whether Ingram should adhere to a stricter two-year limitation under the Trustee Act or the more lenient ten-year rule under the Real Property Limitations Act. These discussions speak to the heart of estate law and how emotional ties can often clash with rigid legal frameworks.

As I reflect on the details, I realize it’s not merely about money or assets. It’s about recognition, acknowledgment, and the right to be remembered. Ingram’s claims highlight the struggles many face regarding what they believe they deserve versus what the law recognizes.

As we analyze it, we’ll see the emotional resonance it carries. After all, every such situation carries its stories, its memories, and, of course, its disputes.

Understanding Limitation Periods: The Legal Backbone

Limitation periods can feel daunting. However understanding them is crucial, especially when dealing with estates and legal claims. In the realm of estate law, we often encounter two significant limitation periods: the ten-year limitation under the Real Property Limitations Act, R.S.O. 1990, c. L.15 (RPLA) and the two-year limitation under the Trustee Act, R.S.O. 1990, c. T.23 (Trustee Act). Each has its intricacies that can greatly impact the resolution of claims made against an estate.

The Ten-Year Limitation under the RPLA

Let’s start with the ten-year limitation under the RPLA. This provision allows a party to bring a claim regarding land or equitable interests for a generous span of ten years. Sounds good, right? In many cases, this extended time frame provides a welcome cushion for those who may be hesitant or unable to act promptly. It’s especially beneficial for individuals with claims that might not surface until well after the death of a person and the reading of the Will.

However, using this longer time frame comes with challenges. For example, how do we balance the need for justice with the reality that long delays can complicate the retrieval of evidence and disrupt the administration of an estate? Here, clarity is essential. A lengthy limitation period might not always serve the best interests of all parties involved, particularly when memories fade and records become hard to trace.

The Two-Year Limitation under the Trustee Act

On the other end of the spectrum lies the two-year limitation period, governed by the Trustee Act. This law dictates a tighter timeframe to file claims related to equitable trusts. Under Section 38(3), claimants must act quickly, within two years of becoming aware of their claim. This timeframe applies to many situations where beneficiaries seek to rectify perceived wrongs in the administration of an estate. How might this impact someone who feels wronged but is faced with such a tight deadline?

For instance, in the case of Ingram v. Kulynych, although Kathleen Ingram believed she had a valid claim against the estate, she waited too long. Her claims against the estate needed to be filed by March 2019, as that was two years following the death of Mr. Kulynych, which occurred in February 2017. By waiting until March 2021 to lodge the claim, she was already outside the allowable period to contest under the Trustee Act.

The Impact of Limitation Periods on Estate Claims

So, why do these limitation periods exist? The straightforward answer is: to ensure the speedy resolution of claims. Statutory deadlines are designed to ensure the speedy resolution of claims.

Limitation periods aim to prevent stale claims from arising years after the relevant events, which benefits both the legitimate parties and the estate.

Moreover, limitation periods force parties to act promptly. This is paramount in legal matters, particularly in estates where the administration must proceed efficiently. If a beneficiary feels entitled to a share, they must ensure they are within the relevant time frames to avoid their claims being deemed statute-barred.

Comparing the Two Limitation Periods

As much as these laws serve their purposes, they can also conflict with personal situations. A claimant might feel an inherent sense of injustice if they are barred from pursuing their claims due to limitation periods. What if someone only learned of their entitlements years later? This is the tension at the heart of estate litigation, where limitation periods serve as gatekeepers, but sometimes they lock out genuine claims.

Ultimately, limitation periods shape the landscape of estate claims significantly. They encourage timely legal action and protect against endless liability claims. As we navigate these laws, it’s vital to understand their implications. Knowledge may be power, but it must be coupled with action within the applicable time frames to make a difference.

The Court’s Decision and Its Implications

The recent case of Ingram v. Kulynych has stirred significant discussions in estate law. The conflict centres on the applicable limitation period for Kathleen Ingram’s claims against the estate of the deceased, Mr. Henry Harry Kulynych. Her claims were initially favoured by Justice Jonathan Dawe of the Superior Court. This was before the ruling was overturned by the Court of Appeal. Let’s break down these decisions and what they mean for future estate management.

Summary of Justice Dawe’s Ruling vs. Court of Appeal Ruling

Justice Dawe’s ruling initially allowed Ingram to pursue her claims based on the ten-year limitation period under the RPLA. He distinguished her claims as equitable, asserting that they had merit considering her long-term relationship with Mr. Kulynych. But did he overlook something crucial? The statute of limitations serves as a legal framework ensuring timely action.

On appeal, the justices found Dawe’s ruling problematic. They argued that the two-year limitation under the Trustee Act should apply. The appellate court contended that timing is everything. It’s essential, especially in estate laws where delays can lead to complications and disputes.

Discussion on the Dismissal of Ingram’s Claims

Ultimately, Ingram’s claims were dismissed. She failed to file within the two-year timeframe following Mr. Kulynych’s death in February 2017. By waiting until March 2021, she lost her right to claim. This ruling underscores the judicial emphasis on timely resolution.

Her claims are no longer viable because they are considered *statute-barred*. This situation highlights the importance of acting swiftly in legal matters related to estate management.

Ultimately, the court finds that the shorter limitation period applies to equitable trust claims against estates, even if the main asset of the Estate was real property. This means the claim was time-barred and must be dismissed.

The Reasoning Behind the Two-Year Limit Ruling

The Court’s ruling emphasized the necessity of adhering to statutory periods in estate law. Why is this so crucial? Delays in estate management can lead to family disputes, financial complications, and uncertainty about the deceased’s wishes. The court aims to protect the integrity of estate administration.

Interestingly, this ruling draws parallels with a precedent case, where a strict two-year limit was similarly upheld. The court’s decision aligns to ensure a streamlined process for claims against estates, preventing endless liability. It’s a reminder that courts lean towards predictability and closure in legal disputes.

Key Implications for Estate Administration

I find this decision to be a clear signal to everyone involved in estate matters. Even if you think your claim is justified, adhering to proper timelines is essential. Here are some critical takeaways from the case:

The two-year limitation is a key principle in *trustee legislation*. Don’t overlook it.
Judicial priorities favour urgent estate management. Delays could work against you.
This case reinforces the idea that equitable claims do not supersede statutory limitations.

The Human Side of Estate Legal Battles: A Personal Reflection

The impact of legal disputes, particularly in matters of estate, can reverberate beyond mere financial losses. They touch hearts, tear families apart, and can often lead to emotional turmoil that eclipses cold legal facts. Acting as a Court-appointed Estate Trustee,

I’ve witnessed firsthand the emotional toll of estate disputes, and it is profound. Each one exemplifies the struggles that arise when laws and personal relationships collide.

Exploring the Emotional Toll of Estate Disputes

Consider this: a family grieving the loss of a loved one, already in pain, now faces a legal battle that divides them. It’s heart-wrenching. When the law turns a family’s grief into a battlefield, the emotional scars can be long-lasting.

Emotional Distress: Legal battles can elevate stress levels exponentially. Families often find themselves fighting each other instead of healing together.
Financial Burdens: Estate disputes are expensive. The longer the battle, the more legal fees accumulate, draining resources that could have been used for family needs.
Division and Isolation: Family members might find themselves on opposite sides of a legal argument. This division often leads to estrangement, which can be devastating.

Have you ever watched a family unravel over a few documents? It’s like witnessing a tragedy unfold in slow motion. I have seen many examples of families torn apart by disputes over Wills and estates. Each story echoes a similar theme — emotional chaos ensues, and relationships disintegrate.

Tips for Avoiding Estate Litigation

Here are some tips to transform a painful conflict into a more amicable solution:

Communicate with your loved ones: Discuss your estate plan with your family and beneficiaries to ensure they understand your wishes. Keep them informed about any changes to your estate plan.
Avoid ambiguity and vagueness: Use specific language in your will and other documents to avoid misunderstandings. Avoid using vague terms or phrases that could be interpreted differently.
Introduce Mediation: Rather than a fierce courtroom battle, complete with the high costs in estate litigation, families should be encouraged to consider mediation. This approach allows for discussions that can preserve relationships. Legal assistance from experienced lawyers is still required in mediation. It is the approach that is different.
Encourage Open Communication: Families need to communicate openly about estate plans. Discussions about intentions can significantly lessen the chances of disputes later on.
Educate on the Legal Processes: Knowing the law can alleviate fears and misunderstandings. An informed family is often a united family.

It’s crucial to balance emotional needs with legal obligations. After all, how can we expect families to find a resolution when emotions are running high? This is where careful planning can serve as a preventive measure against future disputes.

Future Considerations: Learning from Ingram v. Kulynych Estate

When discussing estate management, the complexities can be overwhelming. The case of Ingram v. Kulynych provides a salient example of how crucial it is to be well-informed about estate laws. Let’s unpack the lessons we can derive from this case.

Advice for Individuals Dealing with Estates

First, if you find yourself navigating an estate, knowledge is your ally. Here are some vital pieces of advice:

Understand the limitations: Each jurisdiction has specific limitation periods for filing claims related to estates. Familiarize yourself with them to protect your rights.
Consult professionals: Enlist the help of lawyers specializing in estate law to ensure you’re making informed decisions.
Document everything: Keep records of your interactions and contributions related to the estate. This can play a crucial role in any legal proceedings.

Are you already navigating an estate claim? Don’t hesitate to reach out to a legal expert. It can save you time and resources in the long run.

Importance of Timely Legal Action and Planning

The Ingram case reminds us of a critical aspect of estate management: timeliness. Justice Dawe initially ruled that Kathleen Ingram’s claim could proceed under a ten-year limitation period. However, this decision was later overturned, emphasizing the point that claims must be filed within specific timelines.

Ingram communicated her claims in 2018, but by waiting until 2021 to formally file, she missed a crucial window. This highlights a broader lesson: being proactive is key.

Future Implications for Equitable Trust Claims

With the Ingram ruling, the Court of Appeal for Ontario clarified that equitable trust claims are not exempt from strict adherence to statutory limitations. This has significant implications for anyone looking to assert claims against an estate. Preparation and awareness are the best tools against legal pitfalls in estate matters.

The Importance of Education in Estate Management

The discussion of the Ingram case leads me to a broader conclusion: we need to raise awareness about estate management education. Understanding the basic principles of estate law is not just for lawyers; it’s for everyone. Workshops, online courses, or community seminars can bridge the knowledge gap.

The new strategies to navigate estate claims focus not only on legal acumen but also on efficient communication and mediation. This proactive approach may save families from future strife and can foster understanding among heirs.

In summary, estates present a complex legal environment. The Ingram v. Kulynych ruling serves as a crucial reminder to be aware of limitation periods, to consult professionals, and to act decisively. The landscape of estate disputes is changing, and we must adapt.

Estate Conclusion

The Ingram v. Kulynych case highlights the importance of timely action in estate claims. Prepare, educate yourself, and seek professional help to navigate complexities. As estate disputes grow, so should our awareness and actions.

I hope you have found the discussion of estate issues in this Brandon’s Blog informative. The death of a loved one is probably the most traumatic life event you will encounter. It is doubly so if family members tie up the Estate with costly estate litigation arguments.

Are you a stakeholder in an estate where the appointment of an independent, neutral court officer can at least unlock the jamming up of assets so that the assets can be preserved and their value maximized for the beneficiaries? If so, Smith Estate Trustee Ontario can help you. Contact us so that we can provide a no-cost consultation to see how we can help you and the other beneficiaries.

Do you have way too much financial debt? Before you get to the phase where you can’t make ends meet reach out to me. I am a licensed insolvency trustee (previously called a bankruptcy trustee). If you understand that you can’t pay your financial debts heading into or in your retirement life, contact us.

We understand the pain and stress excessive financial debt can trigger. We can aid you to get rid of that discomfort as well as address your financial problems by offering prompt action and the ideal plan.

Call Ira Smith Trustee & Receiver Inc. today. Make an appointment with one of the Ira Smith Team for a free, no-obligation consultation and you can be on your way to enjoying a carefree retirement Starting Over, Starting Now. Give us a call today so that we can help you get back to a stress and pain-free life, Starting Over, Starting Now.

The information provided in this Brandon’s Blog is intended for educational purposes only. It is not intended to constitute legal, financial, or professional advice. Readers are encouraged to seek professional advice regarding their specific situations. The content of this Brandon’s Blog should not be relied upon as a substitute for professional guidance or consultation. The author, Ira Smith Trustee & Receiver Inc. as well as any contributors to this Brandon’s Blog, do not assume any liability for any loss or damage resulting from reliance on the information provided herein.

Tags Capacity issues, claims against estates, complex estate, costs in estate litigation, disputes in estates, distribution of assets, division of assets, estate administration, estate disputes, estate issues, estate litigation, estate litigation argument, estate litigation lawyers, estate trustees, fiduciary duty, power of attorney, trust disputes, types of estate litigation

Brandon Blog Post

EXECUTOR DUTIES ONTARIO: OUR COMPLETE GUIDE TO MAKE A 1ST TIME EXECUTOR LOOK LIKE A PRO

Post author By Brandon Smith
Post date October 4, 2021

executor duties ontario

We hope that you and your family are safe, healthy and secure during this coronavirus pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

If you would prefer to listen to the audio version of this Brandon Blog, please scroll to the very bottom of the page and click play on the podcast.

Executor duties Ontario: What is an executor or estate trustee?

Executors, or Estate Trustees as they are now called in Ontario, are people named in a Will to become the personal representatives of the deceased. Executor duties Ontario is a complicated process.

The Estate Trustee accepts the role, authorizes the liquidation of the estate assets and the payment of money. The Executor directs and administers the deceased estate both in accordance with provincial and federal laws while abiding by the declared wishes of the deceased.

Executors are people who are legally responsible for the estate of someone who has died. They are required to manage the estate according to the wishes of the deceased person. To be an executor, you must meet certain minimum legal requirements. You should:

have already turned 18;
be financially stable;
reside in Ontario;
have good organizational skills;
be able to keep complete records of all the estate’s transactions;
have a good knowledge of financial matters; and
be able to make effective decisions about the estate.

Suppose there were no Will? What happens? Without a Will, a court can appoint an Estate Trustee Without A Will.

Through our other business, Smith Estate Trustee Ontario, my Firm acts as a Court-appointed Executor/Estate Trustee. Far too often, the person who ends up with the responsibility of settling the estate of a deceased family member or friend is unprepared to do so. This commonly leads to emotional stress, confusion, and financial hardship.

From this Brandon Blog, you’ll learn everything you need to know about effectively fulfilling your duties as an Estate Trustee in Ontario. You will learn how to handle the estate settlement process in Ontario and properly fulfill the duties using our Executor duties Ontario checklist.

Executor duties Ontario: What does an Executor/Estate Trustee Do Right Away?

Executors are people who are appointed to carry out the Will or trust of a person who has died. They are given the authority to make decisions on behalf of the deceased, as long as those decisions are consistent with the wishes expressed in the deceased’s Will or trust. There can be as many Estate Trustees as are indicated in the Will or trust document. When there is a Will, in Ontario, the role is one of Estate Trustee Under A Will.

Once you are notified that you are named as the Executor or one of the Estate Trustees, the first thing you need to do is to decide if you wish to act. Are you capable of doing the job and are you free from any conflict of interest? It is possible to recuse yourself before taking any steps to act as the Executor. However, once you start acting as the Executor, it is very difficult to resign.

An Executor will obtain a copy of the Will as one of the first things they do. As a result, the person’s most recent Will automatically becomes the last Will of the deceased. Some people are unaware that a Will is only as good as its Executors and how they perform their Executor duties Ontario.

Executor duties Ontario: Follow this guide to look like a professional Estate Trustee

Action #1 – Funeral Arrangements and other Day 1 action

If the family is not taking care of this themselves, then you must arrange for the funeral immediately after death. Religious observance of the family and the wishes of the deceased should be your guide. Other things Executor duties Ontario include are:

Arrange for organ donation if applicable.
Find the Will.
Coordinate with family members to notify friends and family of the passing.
Request multiple copies of the Proof of Death Certificate from the funeral director.
Apply for a provincial Death Certificate.
Make necessary arrangements for the ongoing care for dependents/minor children and pets.
Contact the deceased’s bank to ensure that all amounts on deposit are safeguarded, access to any safety deposit box is secured and change signing authorities to Executor(s) so that necessary payments can be made.
Confirm payment to the funeral home.

Action #2 – Submit official paperwork on behalf of the Estate

There are many other notifications that should be made within say, 1 to 2 weeks after the funeral. These Executor duties Ontario consist of:

File the CPP death benefit claim.
Transfer the pension to the spouse by applying for CPP Survivor’s Benefits.
Canada Revenue Agency Notification to Update Record.
Submit OAS/CPP/GIS notifications.
Send the Notice of Death to Equifax and TransUnion, the two Canadian credit bureaus.
executor duties ontario

Action #3 – Protect the hard assets

Concerning any hard assets, as soon as possible after the funeral, Executor duties Ontario include:

Identify and secure all assets: the home, the contents of the home, and other real estate assets.
Direct the post office to forward the mail care of the Estate Trustee.
Inform utilities, landlords, and other service providers.
Review all documents associated with asset ownership, business, investment, including insurance, mortgages, and leases.
Analyze all financial documents, including contracts, divorce papers, or separation agreements, court orders.
Secure personal property, business, vehicles, perishable goods, and safety deposit boxes.
To keep the insurance coverage active, find out what action you need to take if there is a vacant property.
Have all the hard assets appraised.

Action #4 – Protecting financial assets

I already mentioned that I would contact any known financial institution. Other Executor duties Ontario to protect financial assets as soon as possible after the funeral, include:

Gather information about debts and expenses.
Cut off all unnecessary expenses. People rarely think about memberships or subscriptions until the bill or publication arrives in the mail.
The other banks or credit unions, investment advisors, and life insurance companies should be notified.
All credit cards and debit cards should be cancelled.
executor duties ontario

Action #5 – Contacting beneficiaries

Other Executor duties Ontario include:

Completing the inventory of assets and their values on the date of death.
Contacting each of the beneficiaries of Estate individually.
Explaining the Estate administration process to them.
Estate beneficiaries need to know they only receive distributions upon the probate of the Will, completion and filing of all final tax returns, and full payment of the estate’s debts and debts of the deceased. How the estate is handled will also depend on its size and nature.
Depending on the circumstances, the Executor of the estate can make interim distributions.

It is important to keep in mind that Estate Trustees are personally liable. This means if you pay out too much on an interim basis and don’t have enough to cover all the debts, you will be in trouble if you can’t claw back any money.

Action #6 – The probate process

Generally, probate involves completing the necessary Ontario government forms for the confirmation and appointment of the Executor(s), who will manage the estate distribution. The Executor duties Ontario for probate include, say within 30 days after death:

Speak to the estate administration lawyer for assistance.
Calculate the estate administration tax for the Ontario estate.
With the help of the estate administration lawyer, prepare the probate application.
The probate application, along with all relevant documents, should be filed with the deceased’s local probate court. The required documents, including the original Will and payment of the estate administration tax.
executor duties ontario

Action #7 – While you are waiting for the Certificate of Appointment of Estate Trustee With A Will

The court can take many months to respond to your probate application, especially in Toronto. In the meantime, there are things that Executor duties Ontario allow you to do without the need to show the Certificate of Appointment. You can use a copy of the Will. These include:

The deceased’s passport, driver’s license, and Ontario health card can be cancelled.
Meeting with the investment advisor, banker, and insurance agent to gain a better understanding of the estate’s assets.
Finalize the list of assets.
Developing a strategy to liquidate the assets of the estate.
Choose a real estate broker, negotiate the rate and prepare the listing for posting after the grant of probate is received. Be sure you obtain a professional appraisal first to determine the current market value. You don’t want to rely on just the broker’s estimate of market value.
Organize an estate sale to dispose of personal belongings that have not been claimed by the family. When appropriate, arrange donations.
Prepare the property for sale. In almost all cases, minor repairs, painting, cleaning, and staging are necessary.
Prepare life insurance forms (to be submitted once you have your Certificate evidencing the appointment of the Estate Trustee(s)).
Stay in constant contact with the beneficiaries to inform them that you are still waiting for the grant of probate and that things are proceeding normally.

Action #8 – Selling the assets in Estate

Some of the following Executor duties Ontario could be done only with a certified copy of the Will. Some will require a Certificate from the court appointing the Estate Trustee:

Open an estate bank account with your preferred financial institution if you have not already done so.
Merge all bank accounts into the estate account.
List any real property for sale.
Request that all mutual funds, stocks, bonds be liquidated and the funds transferred to the estate
account.
Incorporate all estate sale proceeds and any other cash assets into the estate trust account.
executor duties ontario

Action #9 – Pay all debts and calculate and pay all taxes

To make the final distribution, the creditors and amounts owing to Canada Revenue Agency must be settled in full. In this phase, Executor duties Ontario include:

Clear debts.
Make sure that tax documents are in order.
Prepare all necessary income tax returns, including the estate tax return, with the help of an accountant or other tax specialist.
If your Notice of Assessment has been received and the CRA has been paid all amounts owed, you can request a Tax Clearance Certificate from them.

Action #10 – Final distribution to estate beneficiaries and completion of Estate records

Now it is time to make the distribution to beneficiaries and close your file. These Executor duties Ontario are:

If you are charging a fee, including a care and management fee for having administered the estate, calculate it and pay yourself.
Prepare and issue the distribution to beneficiaries of the remainder of the estate.
Prepare a final accounting and issue it to all beneficiaries.
Get releases from beneficiaries.
Closing the estate bank account.
Terminate the deceased’s social insurance number.
executor duties ontario

Executor duties Ontario: Compensation for estate trustees

The Ontario estate laws and associated regulations provide a framework for the management of a deceased person’s estate and for the distribution of the property. The laws and regulations also deal with the duties and responsibilities of the Executor and compensation for the Estate Trustee.

All Estate Trustees are legally permitted to charge fees. A fee that isn’t in the Will must be an amount that is considered fair and reasonable. The amount depends on the value of your estate and the amount of work your Estate Trustee has to do.

Even though the fee calculation is more complicated than this, for our purposes, you should use as a benchmark 5% of the estate’s value. Additionally, an additional care and management fee of 2/5 of 1% of the average annual value of the assets is sometimes charged.

Executor duties Ontario summary

I hope you found Executor duties Ontario Brandon Blog helpful. If you are concerned because there is an Estate that needs a professional Estate Trustee, Smith Estate Trustee Ontario can help you. Since we are also a licensed insolvency trustee firm, we can also help if the deceased Estate is insolvent. We can also help if you or your business have debt problems.

It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.

The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties while avoiding bankruptcy. We can get you the relief you need and so deserve.

The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We understand that people and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do. We help many people and companies stay clear of bankruptcy.

That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost consultation.

We will get you or your business back up driving to healthy and balanced trouble-free operations and get rid of the discomfort factors in your life, Starting Over, Starting Now.

We hope that you and your family are safe, healthy and secure during this coronavirus pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

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Brandon Blog Post

ESTATE TRUSTEE DURING LITIGATION: THE GOOD AND PRACTICAL WAY TO SAFEGUARD ASSETS DURING ESTATE LITIGAT1ON

Post author By Brandon Smith
Post date August 9, 2021

estate trustee during litigation We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

If you would prefer to listen to the audio version of this Brandon Blog, please scroll to the very bottom and click play on the podcast.

Estate Trustee During Litigation: What is it?

All of us with business or family assets and/or debts can be subject to litigation or worry about it. Whatever the reason, the reality is that no one can remove themselves from the litigation process…not at the beginning, not at the end, and not even in death. Perhaps it is an employee or partner, a spouse or ex-spouse, your children or grandchildren, or even your parents.

Many times a person’s death creates Estate litigation between family members; either over a Will or because there is no Will! Sometimes it is necessary for the appointment of a neutral, independent court officer to control the Estate assets and deal with Estate issues while the beneficiaries and other potential stakeholders are involved in Estate litigation.

In our sister business, Smith Estate Trustee Ontario, we accept the appointment of Estate Trustee and we can also act as the independent court officer Estate Trustee During Litigation. This Brandon Blog is about why it may be necessary for the court to appoint an Estate Trustee During Litigation and why it may turn out to be a necessity.

The role of an Estate Trustee During Litigation

An Estate Trustee During Litigation is tasked with protecting the Estate while the litigation is ongoing and gathering information and, sometimes, helping to resolve the litigation.

The duties include, in particular:

Calculating the fair market value of the estate’s assets and liabilities.
Keeping its assets safe and secure.
Retaining and, if necessary, tracing anything discovered to be missing.
Keeping separate trust accounts.
Reviewing and handling protective and other expenditures.
Establishing, defending, settling and paying any debts.
The filing of income tax returns and if the situation allows for it, whatever tax planning to reduce income taxes can take place.
Investing estate funds to maximize yields until the Estate Trustee During Litigation is discharged of its obligations and funds.

Because of their experience, resources, objectivity, and integrity are sometimes viewed as the best option. As a matter of common law, responsibilities of the Estate Trustee During Litigation cease upon the termination of the litigation, and they are required to transfer assets without having to be ordered to do so separately.

Appointing an Estate Trustee During Litigation

A court appoints an Estate Trustee During Litigation to handle the deceased estate. Section 28 of the Ontario Estates Act, R.S.O. 1990, c. E.21 provides the statutory authority. The Ontario Superior Court of Justice grants administration in the case of either intestacy (when there is no Will) or pending a valid challenge to the validity of the Will, or some other action involving the Will and the deceased estate.

While the ongoing litigation continues, the Estate Trustee During Litigation has all the powers and rights of a general administrator, except for the right to distribute the residue of the property. Administrators of such estates are subject to the immediate control and direction of the court, and the court may order that the administrator receive reasonable remuneration from the estate of the decedent.

Court Appoints Estate Trustee During Litigation

The court appoints the Estate Trustee During Litigation and can set its remuneration. Therefore, the court must have some guiding principles it follows to determine when it is appropriate to make such an appointment. Well, it does. It comes from a situation I previously wrote about in my July 24, 2019, Brandon Blog DYING WITHOUT A WILL IN ONTARIO: DISTRIBUTION TO HEIRS NOT EASY. In that Brandon Blog, I wrote about 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. He passed away without leaving a Will. His sister, Phillipa Baran, was appointed Estate Trustee of the Estate of Toller Cranston by the Mexican court on September 3, 2015, on the consent of Phillipa and her two brothers, Guy Francis Cranston and Hugh Goldie Cranston. These three siblings were the only beneficiaries. In December 2016, her appointment as Estate Trustee of the Estate of Toller Cranston was confirmed by the Ontario court, also on consent. Phillipa Baran, therefore, had sole authority for Estate administration.

Estate litigation ensued and the court-appointed an Estate Trustee During Litigation. A rift between the three beneficiaries developed. The brothers filed a motion to remove their sister as Estate Trustee. One of the points of contention between the siblings was the manner ins which Phillippa Baran was handling the sale of Estate Assets, namely, the artwork of Toller Cranston. While that Estate litigation was pending, in 2019, the Master in the Estates court appointed an Estate Trustee During Litigation to take charge of trust property remaining in the meantime until the issue could be resolved.

During the litigation involving the Estate of Toller James Montague Cranston, the Master ordered the Estate Trustee During Litigation to act without posting an Administration Bond. The Master also ordered that all assets of the Estate shall be immediately turned over to the Estate Trustee Under Litigation who shall also file a Consent with the court. Phillipa Baran was ordered to fully cooperate in the transfer of the Estate assets and the production of records, including all financial records.

Philipa Baran appeals the appointment of the Estate Trustee During Litigation

Philippa Baran sought to set aside the Master’s decision and order appointing an Estate Trustee During Litigation. Her appeal was heard by the Divisional Court. According to the court, the Ontario Superior Court of Justice has statutory authority to appoint an Estate Trustee During Litigation.

On this appeal, the Divisional Court Judge felt the appeal boiled down to two points. Specifically, whether the decision of the Master should be set aside and whether the order issued exceeded the Master’s jurisdiction.

The Divisional Court determined that the Master did not err in either law or fact based on its review of the relevant statutory provisions and jurisprudence. The Judge found nothing wrong with the Master’s Order.

To be fair to Ms. Baran, the Judge noted that there is evidence that she has worked very hard to manage the estate’s assets and debts since Toller Cranston died. It has been a challenging task. It appears, however, that the parties have reached a deadlock.

The Judge also thought Ms. Baran’s handling of the remaining artwork, including either selling the art over her brothers’ objections or planning future rights to the artwork without consulting Guy Cranston or Goldie Cranston, was unreasonable and contrary to her obligations as Estate Trustee.

Ms. Baran was, in the court’s view, in a conflict of interest in this litigation. Ms. Baran’s appeal was therefore dismissed, the appointment of the Estate Trustee During Litigation stands and Ms. Baran must temporarily return her Certificate of Appointment to the court.

Estate Trustee During Litigation: A Primer for Accountants and Lawyers

In addition, the Divisional Court noted some of the factors that will be considered by the court in determining whether or not it should exercise its discretion to appoint an Estate Trustee During Litigation. Accounting firms, lawyers, and anyone advising in the Estates area should be aware of these factors.

In terms of the court’s jurisdiction to appoint an Estate Trustee During Litigation, the following points were confirmed:

When necessary, the court can draw upon its inherent jurisdiction to protect parties and ensure justice in the proceeding by supervising the management of estates and controlling its own processes.
It is in the court’s inherent jurisdiction to appoint an officer to preserve and protect the assets of an Estate that may be at risk during litigation.
A level playing field must be ensured and the assets of the estate protected from the tactics used by litigating parties. No one should be able to use their control over the Estate to benefit themselves or to hurt the other beneficiaries.
It is crucial to administer an Estate’s assets to the maximum advantage of its beneficiaries. When an Estate Trustee faces an adversarial position towards his/her co-trustees or beneficiary, it is prudent to replace that trustee temporarily;’simple prudence demands it.
A court should only refuse the appointment of an Estate Trustee During Litigation in the clearest of cases since it is not an extraordinary measure. In most conflicts between the trustee and beneficiaries, the court will favour the appointment, unless it is not one of those very challenging Estates thereby making the estate administration straightforward.

According to the Divisional Court:

Whether an Estate Trustee During Litigation should be appointed is a discretionary decision. In determining whether the discretion to appoint an Estate Trustee During Litigation should be exercised, the following factors should be considered:

An Estate Trustee may be a witness in litigation.
Conflicts of interest are possible.
Conflict of interests between the Estate Trustee and/or beneficiaries.
There is hostility between the Estate Trustee and/or beneficiaries.
There is a lack of communication between the parties.
There is evidence that some parties were excluded from settlement discussions.

Estate Trustee During Litigation summary

I hope you have found this Estate Trustee During Litigation Brandon Blog informative. The death of a loved one is probably the most traumatic life event you will encounter. It is doubly so if your loved one dies intestate and family members tie up the Estate with costly litigation.

Are you a stakeholder in Estate litigation where the appointment of an independent, neutral court officer can at least unlock the jamming up of assets so that the assets can be preserved and their value maximized for the beneficiaries? If so, Smith Estate Trustee Ontario can help you. Contact us so that we can provide a no-cost consultation to see how we can help you and the other beneficiaries.

Do you have way too much financial debt? Prior to you getting to the phase where you can’t make ends meet reach out to me. I am a licensed insolvency trustee (previously called a bankruptcy trustee). In fact, if you understand that you can’t pay your financial debts heading into or in your retired life, contact us.

Call Ira Smith Trustee & Receiver Inc. today. Make an appointment with one of the Ira Smith Team for a free, no-obligation consultation and you can be on your way to enjoying a carefree retirement Starting Over, Starting Now. Give us a call today so that we can help you get back to stress and pain-free life, Starting Over, Starting Now.

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.