Can a Beneficiary Sue an Executor for Breach of Fiduciary Duty in Ontario?
Yes, a beneficiary can ask the court to act when an estate trustee mismanages the estate, though the right step depends on what went wrong. The court has several tools, and you may need more than one.
A beneficiary can apply to compel accounts, because a court will not require an executor or administrator to account unless a person interested in the estate or a creditor asks for it. On a passing of accounts, the judge may inquire into any complaint by any person interested, and may order the executor, administrator or trustee to pay damages or other sums to the estate. The Superior Court of Justice may also remove a personal representative and appoint another suitable person, although courts treat removing a trustee the deceased specifically chose as a serious matter.
A trustee who acted honestly and reasonably and ought fairly to be excused may be relieved wholly or partly from personal liability for a breach of trust, but not for a loss from investing trust property. Time limits can apply to claims, so it is worth speaking with a lawyer promptly.
Key takeaways
- A beneficiary can apply to compel an executor or administrator to account, because the court will not require accounts unless an interested person or a creditor asks.
- On a passing of accounts, the judge may inquire into complaints and order the executor, administrator or trustee to pay damages or other sums to the estate.
- The Superior Court of Justice may remove a personal representative and appoint another suitable person, but removing a trustee the deceased chose is treated as serious.
- A court may excuse a trustee who acted honestly and reasonably from liability for a breach of trust, but not for a loss from investing trust property.