Can an executor be sued by a beneficiary in Ontario?
A beneficiary can ask the court to require an executor to pass accounts, and a complaint can then be raised before a judge. On a passing of accounts, a judge can inquire into any complaint or claim by a person interested in the taking of the accounts, including misconduct or neglect causing loss, and may order payment to the estate.
Claims often turn on duties such as investing with the care, skill, diligence and judgment of a prudent investor. The court may also disallow an expense that was not properly incurred in carrying out the trust. If an executor took compensation early and the court later approves a lower amount, it can order the difference repaid to the estate. Any person with a financial interest may also apply for directions, and the court may appoint an estate trustee during litigation.
Defences exist too. The court may relieve a trustee from personal liability for a breach of trust if they acted honestly and reasonably and ought fairly to be excused. Time limits for claims depend on the facts and can end your rights, so speak with a lawyer promptly and gather the will, statements and any accounts you have received.
Key takeaways
- On a passing of accounts, a judge can inquire into any complaint by an interested person, including misconduct or neglect causing loss, and may order payment to the estate.
- If an executor took compensation early and the court approves a lower amount, the court can order the difference repaid to the estate.
- The court may relieve a trustee from personal liability for a breach of trust if they acted honestly and reasonably and ought fairly to be excused.
- Time limits for claims depend on the facts, so speak with a lawyer promptly.