Published by DBH Law
on September 10th, 2020
In a recent decision, an estate trustee went to court for help when issues between a testator’s charitable and family beneficiaries resulted in stalling the estate’s distribution for over four years.
The testator died on March 10, 2016. In her will, she made no provision for the distribution of the residue of her estate following payment of specific bequests and debts of the estate. The estate had a value of just over $600,000.
The estate’s trustee brought an application for directions in 2017. The ensuing court order, issued on July 7, 2017, directed that the residue was to be distributed equally to eight family members and the ten charities to whom testator had made specific bequests in her will. The court order also provided that the family members were to execute a release in a form to be drafted by the lawyer for the charitable beneficiaries and approved by the lawyer for the trustee.
However, in the three years following the court order, the lawyers for the charitable beneficiaries and the trustee repeatedly failed to reach an agreement on the wording of the release. As a result, no interim distribution had been made.
Given the time that has already passed since [the testator’s] death, it is in the interests of justice and of all parties concerned that all remaining disputes with respect to the Trustee’s administration be settled as quickly as reasonably possible. Everyone involved in the Estate appears to have been acting in good faith and with a desire to ensure that it is properly administered. Yet, as a result of the delays in this case to date, [the testator’s] last wishes have not yet been fulfilled. Her residual beneficiaries have been deprived of the use of money that she wanted them to have. The Trustee has been unable to wind up his administration. The Trustee and the Charitable Beneficiaries continue to incur legal costs which may further deplete the money available for distribution to all beneficiaries. This cannot continue.
Ontario Superior Court of Justice
