In the case of Meuse v Taylor, 2022 ONSC 1436, the Applicant sought to remove an estate trustee of an estate that consisted largely of the ‘Sanders Portrait’, a portrait purportedly of William Shakespeare painted during his lifetime. A 2016 appraisal of the portrait gave it a value of $50,000,000 USD. The Applicant argued that the named estate trustee did not have the expertise and competence to obtain a fair market value for the Sanders Portrait. However, the judge found that there was no evidence to suggest that the named estate trustee would endanger the estate nor was there any evidence to override the testator’s appointment.

The test to remove an estate trustee is a strict one that allows the court to order the appointment of a new trustee only when there is clear evidence that there is no other course to follow. The Applicant, in this case, had to show that removing the trustee would be necessary because otherwise the estate would not be properly executed.

The Applicant made several arguments to suggest that the named estate trustee should be substituted by the Applicant himself. One of these arguments was that the estate trustee lacked the knowledge required to administer the estate. The judge found that an estate trustee is not required to have subject-matter expertise about the estate’s assets, experience in administering estate or any particular training or education. When an estate trustee does lack any expertise, they can retain appropriate experts. Administering an estate involves complex issues including, accounting, insurance and tax. It is unlikely that any estate trustee would be an expert in all facets of estate administration.

Another point the Applicant raised was that the named estate trustee did not understand the value of the estate, specifically the assessment of the value of the Sanders Portrait. The named estate trustee was skeptical of the $50,000,000 USD valuation. The value of an estate is an important consideration and task for any estate trustee as this is what determines the share of beneficiaries and the amount of the estate administration tax. This was critically important in this case when almost the entirety of the estate was one piece of art.

However, the judge found that the estate trustee had not pre-determined the value of the Sanders Portrait and as long as he would take the appropriate and reasonable steps to maximize the Portrait’s value, then he could do the job of an estate trustee.

Regardless of the complex valuation issues of the estate and the estate trustee’s lack of expertise in Elizabethan art, the judge found that the named estate trustee would not endanger the estate and therefore the application was dismissed.

As an estate trustee, it is important to remember that there are several obligations that must be fulfilled. However, there is no expectation that an estate trustee would have the knowledge to complete all aspects of the role without professional assistance. It is common practice to engage accountants to file taxes and real estate agents to determine property values. As long as the estate trustee will take the necessary and appropriate steps to administer the estate as per the testator’s wishes and in the best interests of the beneficiaries, then the court will likely find that there is no need to substitute the estate trustee.

Thank you for reading.

Mohena Singh