Canadian Lawyer Magazine
By Bernise Carolino, September 3rd, 2024
Conflict of interest arises when trustee seeks larger estate share for herself, ruling says
The Superior Court of Justice of Ontario recently authorized two brothers to administer their mother’s estate according to her will and removed their sister as an executor and trustee in an effort to resolve the deadlock plaguing the estate.
In 2021, the parties’ mother passed away. She left behind a will that named her three children as executors and trustees of her estate. The will directed the equal division of her estate among them, with a specific provision that the first brother could exercise a right of first refusal to purchase the family home at King’s Forest Drive, Hamilton, Ontario at fair market value.
When the first brother expressed interest in purchasing the home, the siblings initially agreed on a sale price of $660,000. This agreement would allow the first brother to use his share of the estate as a down payment, with the remaining amount to be financed through a mortgage, so that the other two siblings could receive their share.
However, disagreements soon arose, particularly regarding the handling of the estate taxes and expenses.
The court noted that the sister unreasonably insisted on receiving a larger share of the estate’s residue than her brothers, which contradicted the will’s instructions and prevented the administration of the estate as intended. The court also found no merit in the sister’s application seeking to force the sale of the house and to claim occupation rent from the first brother as she lacked the standing to make such claims.
