Yesterday, I blogged about some of the key considerations and challenges you may want to take into account when choosing an estate trustee to administer your estate. Having an estate trustee who is responsible and possesses the right skill set will ensure that the estate is properly administered and will minimize the risk of unnecessary legal proceedings.
One of the duties of an estate trustee includes keeping meticulous records of the financial state and transactions of the estate in order to be prepared to account to the beneficiaries. Huang v. Nie represents just one example of many where the estate trustee did not appear to fully understand their role and its accompanying duties, and had failed to account to the beneficiary.
In this case, the deceased died on September 23, 2019, without a Will. The Applicant is the deceased’s 17‑year‑old son, and the Respondent is the deceased’s widow. Both parties are beneficiaries of the estate.
The Respondent applied for and received a Certificate of Appointment of Estate Trustee Without a Will. In her application, the Respondent stated that the approximate value of the estate was $651,137.89, comprising two bank accounts and real estate. The Respondent also cited her intention to hold the Applicant’s interest as a guardian for property.
Since the Applicant was a minor, the Ontario Children’s Lawyer (the “OCL”) expressed concerns about the Respondent’s plan and had repeatedly requested particulars with respect to the financial state of the estate, including a list of assets owned by the deceased at the date of death, a list of debts at the date of death, and a list of all disbursements since the date of death. The OCL made multiple requests to obtain the required information, which the Respondent ignored. Ultimately, the OCL served the Respondent with an application record, to which the Respondent did not file any responding materials.
The court expressed concern over the estate trustee’s management of the estate. The court noted that more than 4.5 years had passed since the deceased’s date of death, and more than 2 years had passed since the Respondent was appointed as estate trustee, giving her plenty of time to administer a simple estate. The Respondent’s conduct reflected poorly on her ability to administer the estate, especially given her lack of cooperation with the OCL and her inability to properly safeguard her son’s interest in the estate. Therefore, it was not surprising when the court ordered the Respondent to pass her accounts.
In this particular case the estate trustee was not chosen by the deceased, however, it is not unusual for individuals to select their spouse as the estate trustee of their choice. While this decision can work out in some cases, it could backfire in others, especially if the spouse does not have a full understanding of the scope of the role and their duties. If you are inclined to choose a spouse, friend, or close relative to administer your estate, it’s important to set aside your emotional connection to that person and carefully consider whether they are truly the right fit for the role.
Thank you for reading.