How can beneficiaries remove an executor in Ontario?
Removal is a court decision: the Superior Court of Justice may remove an estate trustee on any ground on which it may remove any other trustee, and appoint another proper person in their place.
The grounds depend on the facts and are worth discussing with a lawyer. Any person who appears to have a financial interest may apply to court for directions, and the court may set the issues to be decided and may appoint an estate trustee during litigation. Beneficiaries can also move for an order requiring the executor to pass accounts. On a passing, a judge can inquire into misconduct or neglect causing loss. Where co-executors disagree, they can apply for the court's opinion, advice or direction without starting an action.
A replacement can also come about in other ways. An estate trustee who wants to step down after acting generally needs a court order, for example under s. 5 (appointing new trustees) or s. 37 (removal and replacement). A court may also relieve a trustee of personal liability for a breach of trust if they acted honestly and reasonably and ought fairly to be excused. Because outcomes turn on the facts, get legal advice before you apply.
Key takeaways
- The Superior Court of Justice may remove an estate trustee on any ground on which it may remove any other trustee, and appoint another proper person.
- A person with a financial interest may apply for directions, and the court may appoint an estate trustee during litigation.
- Co-executors who disagree can apply to the court for its opinion, advice or direction without starting an action.
- An executor who has started acting generally needs a court order to step down, for example under s. 5 or s. 37 of the Trustee Act.