Tag: in specie
After being embroiled in a lengthy legal dispute, Audrey Hepburn’s sons appear to have settled the division of their late mother’s personal property.
By way of background, Audrey Hepburn left her estate in equal shares to her two sons. Her will, however, did not provide any directions as to how her personal belongings were to be distributed. Many of the items in dispute are famous memorabilia acquired throughout her lengthy acting career.
In Ontario, all property belonging to a deceased person who dies with a will immediately vests in his or her estate trustee. However, it is not entirely clear as to whether an estate trustee has the authority, absent specific direction from the testator, to distribute the personal effects of the deceased.
In Re Bucovetsky Estate,  O.J. No. 303 it was held that in specie distributions are not permitted in the absence of a specific direction in the will or unanimous consent of all beneficiaries. Accordingly, without specific authority or unanimous consent of all beneficiaries, an estate trustee should take care to avoid distributing personal items.
Some options that may be available to an estate trustee who is confronted with the difficulty of determining how to deal with the distribution of personal effects of a deceased person include:
- seeking directions from the court pursuant to section 60 of the Trustee Act, R.S.O. 1990 c T. 23; or
- selling and converting the personal items into cash in accordance with the testator’s will or by section 17 of the Estate Administration Act, S.O. 1990, c. E.22
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