When it comes to estate litigation, estate trustees may be challenged over how they manage an estate or whether they are violating their fiduciary duty. A recent decision from the Ontario Superior Court of Justice examines when and how a beneficiary can remove an estate trustee.

Letourneau v. Summers as Estate Trustee, 2022 ONSC 4295

The applicant was an elderly 82 year old woman in poor health, and the sole beneficiary of her son, Bernold’s estate. Bernold died intestate and since Bernold did not have a spouse or children when he died, the applicant was the only person entitled to a share of his estate under the Succession Law Reform Act. The respondent, her other son Summers, was the trustee for the estate.

Summers’ management of the estate was problematic. He failed to respond to Letourneau’s requests to sell her late son’s home as he was considering buying the home himself. Though Summers paid off the debts associated with the home, he did not consult Letourneau about any of these decisions and so she didn’t know whether Summers’ own funds were used to pay for them or whether the funds came from the estate. Furthermore, Summers rented the home to his friend, despite the applicant’s explicit refusal. Summers eventually listed the home for sale, but only after he determined that he was unable to afford its purchase. Much like the house improvements and estate debts, Summers did not account for the rental of the house and the applicant was unaware of where the money went. The applicant alleged that Summers removed everything from the home and put it into storage without providing her any accounting of what was removed.

Letourneau sought the removal of Summers as estate trustee and proposed to replace him with her other son.

Law and Analysis

The Court listed the principles when considering the removal of an estate trustee: 

1. the Court will not lightly interfere with the testator’s choice of trustee;
2. clear evidence is required that removal of the trustee is necessary;
3. the Court’s main consideration is the welfare of the beneficiaries; and 
4. the estate trustee’s acts or omissions must be of such a nature as to endanger the administration of the estate.

Summers’ lack of accounting for the estate assets and liabilities, his actions demonstrating his self-interest around the administration of the will and his lack of any communication with Letourneau led the court to conclude he should be removed as trustee. Letourneau’s other son was appointed as estate trustee in place of Summers.

Thanks for reading,

Sara Moledina