Estate Planning

More on McAllister - the Removal of a Trustee

By Hull & Hull LLP

 Yesterday I blogged on the decision in McAllister v. Hudgin and the issue of when and how a trustee has a duty to account. 

In its decision, the court also considered the removal of a trustee. 

In McAllister, the applicant had argued that the trustee was in a conflict of interest.  Specifically, prior to the Deceased’s death, the daughter who was named as estate trustee had acted as the Deceased’s attorney for property.  The applicant argued that since the estate trustee was refusing to pass accounts for her actions as attorney for property, it was inappropriate for her to continue to administer the estate. 

The court rejected these submissions for two reasons.  The first reason was that the court determined that the estate trustee had proceeded prudently in her administration of the estate.  Moreover, there had been no accusation that the trustee had acted dishonestly or with mala fides with respect to the estate that would justify her removal. 

The second reason related to her “refusal” to bring an application to pass accounts.  The court found that at this stage, it was only a “supposition” on the part of the applicant with an inadequate evidentiary basis.  It determined that if the applicant wished to pursue a removal on this ground that he could only do so once further evidence had been adduced.

I hope you enjoyed my blogs this week.  Have a great weekend!

Megan F. Connolly 

Full post as published by Toronto Estate Law Blog on September 05, 2008 (boomark / email).