How To Fire An Estate Trustee
What is a beneficiary to do if the trustee who is administering the estate is causing headaches or making decisions that the beneficiary considers harmful to his or her interest in the estate? How do you get rid of an estate trustee?
I have written before at: https://www.linkedin.com/pulse/estate-trustee-must-go-gwendolyn-l-adrian?trk=mp-reader-card that a court's primary consideration in determining whether to remove an estate trustee is the welfare of the beneficiaries. Simply put, the estate exists for the benefit of those to whom the deceased is giving it and the trustee must act in the interests of those beneficiaries. If an estate trustee fails to do so, the beneficiaries can bring an application to have the trustee removed.
An example from the courts illustrates when a trustee will be removed. In Borisko et al v Borisko et al, the beneficiaries brought an application to remove the trustee. The will required the shares and dividends of a private corporation to be transferred to a family trust. The trustee delayed in doing so and kept the shares and dividends in the estate. This action artificially inflated the estate's value thereby allowing the trustee to potentially earn additional compensation. The court ruled that this conflict of interest created mistrust between the beneficiaries and the trustee and ordered the trustees removal.
If you want to fire the trustee who is administering the estate, you will need clear evidence of why he or she should be removed as trustee. Additionally, you will need to suggest another trustee and provide the court with proof that they consent to act as trustee. In rare cases an replacement trustee is not required but such cases do require a plan for how the estate will be administered.
The Lesson: Estate trustees can be removed by the courts but it requires clear evidence including evidence of how the estate will be administered. We recommend seeking legal advice regarding your particular circumstances and would be pleased to assist you.
Borisko v Borisko et al, 2010 ONSC 2670 https://www.canlii.org/en/on/onsc/doc/2010/2010onsc2670/2010onsc2670.pdf
Gondor v Evans et al, 2010 ONCA 172 https://www.canlii.org/en/on/onca/doc/2010/2010onca172/2010onca172.pdf
The content and the opinions expressed here is informational purposes only and does not constitute legal or professional advice. Nor does reading or commenting on it create a lawyer/client relationship with the author. I encourage you to contact me directly at adrianlawoffice@gmail.com if you have specific legal questions or concerns.
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